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Both of the above d none of the above if a firm

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both of the above d.  none of the above If a firm reaches breakeven, we can reasonably conclude that contribution margin > 0 21. true b.  false If a firm reaches breakeven, we can reasonably conclude that breakeven quantity   capacity. 22. true b.  false If price decreases, direct labor costs decrease, and direct material costs decrease, then  contribution margin must also decrease. 23. true  b.   false A standard assumption of breakeven analysis is that worker productivity changes linearly over the  time period considered. 24. true  b.   false If CM > 0, then the product is probably in its growth phase. 25. true    b.   false Other things equal, the contribution margin increases if… 26. fixed cost decreases b.  breakeven quantity decreases 1. both of the above d.  none of the above    In “cost plus” pricing, the seller’s profit is independent of increases in raw material costs. 27. true b.  false Assume A and B are head-to-head rivals.  Also assume both regularly earn excess rent.  Given  just this information our best guess is that both firms are competing in an oligopoly. 28. true b.  false Assume firm A has tried two pricing policies and determined that they are revenue neutral.  From  this we can reasonably conclude that the profit generated by both policies is more or less equal. 29. true  b.   false Assume you are a brand manager.  You know from experience that the market is very price  sensitive and all rivals are fighting to increase share.  Your boss has challenged you to increase   contribution margin  by 4-5% over the next year.  Your first move is most like to consider… 30. increasing price b.  decreasing fixed costs 1. decreasing variable costs d.  all three are equally appropriate Assume you are a brand manager.  You know from experience that the market is very price  sensitive and all rivals are fighting to increase share.  Your boss has challenged you to decrease   breakeven quantity  by 4-5% over the next year.  Which of the following could achieve this  outcome? 1. increasing price b.  decreasing fixed costs 1. decreasing variable costs d.  all three can help achieve this outcome Many restaurants in the Pittsburgh area routinely price wine at 2.5 times the cost of the wine.  This is an example of… 31. competition based pricing b.   mark-up pricing 1. both of the above d.  none of the above Prices in oligopoly…  
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32. are virtually identical over firms since the product is homogenous 33. often appear to be collusive 34. both of the above d.   none of the above Explicit collusion is most likely to occur in…   35. perfect competition b. oligopoly 2. monopoly d. equally likely in all three In theory and in practice there are no constraints on the pricing policy of…   36. monopolists b.
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