By and large, the price of each item on a restaurant menu is:
A) an accurate reflection of the item's marginal cost.
B) based strictly on consumer demand.
C) a function of cost and the price elasticity of demand for the item.
D) a fixed multiple of the item's total cost.
C
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The Celler-Kefauver Act deals primarily with which of the following issues?
a. Price discrimination. b. Exclusive dealing. c. Mergers. d. Deceptive advertising. e. Boards of directors.
The abnormal net income model defines the market value of a firm
A) is its book value minus the present value of expected economic profits. B) is its book value plus the present value of expected economic profits. C) is its book value divided by the present value of expected economic profits. D) is its book value multiplied by the present value of expected economic profits.