Even though it often does not result in profit maximization some small firms

Even though it often does not result in profit

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106) Even though it often does not result in profit maximization, some small firms use a cost-pluspricing strategy anyway becauseA) they do not understand what marginal revenue and marginal cost mean.B) it is expensive to hire an economist who can determine what the profit-maximizing price is.C) they sell several products, each of which sells for a different price. The time and expenseinvolved in finding the profit-maximizing price for each product are not worth the effort.D) it is easy to use.Answer: D106)Diff: 1Page Ref: 533-534/533-534Topic: Cost-Plus PricingLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking31
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107) Though large firms have the knowledge and resources to utilize a better pricing strategy, manychoose to use cost-plus pricing. One reason for this is that107)Diff: 2Page Ref: 533-534/533-534Topic: Cost-Plus PricingLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking108) Which of the following statements about two-part tariffs isfalse?108)Diff: 3Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking109) Some firms require consumers to pay an initial fee for the right to buy their product and anadditional fee for each unit of the product they purchase. This practice is referred to as109)Diff: 1Page Ref: 534-536/534-536Topic: Two-Part TariffLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking32
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