Firms that choose to use a fixed-price policy:
A.
Will tend to experience larger inventory changes than firms that follow a flexible-price policy
B.
Will tend to experience smaller inventory changes than firms that follow a flexible-price policy
C.
Find that their inventories do not respond to demand shocks
D.
Will not hold inventories
A.
Will tend to experience larger inventory changes than firms that follow a flexible-price policy
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Using the table, Fred's marginal cost of the 200th slice of pizza is
A) $2.50. B) $6. C) $0.50. D) $20.
An increase in Todd's wealth from $2 million to $4 million raises his utility from 400 units to 500 units. If he has a utility of wealth curve with the typical shape showing risk aversion, then with a wealth of $6 million his utility might be
A) 500 units. B) 570 units. C) 600 units. D) 620 units.