QUESTION 1 Assuming a constant marginal cost, a lower price elasticity of demand

Question

QUESTION 1

Assuming a constant marginal cost, a lower price elasticity of demand would call for a relatively lower mark-up ration.

A.) True

B.) False

QUESTION 2

Mark-up pricing might be more suitable for monopolies

A.) True

B.) False  

QUESTION 3

Relatively high transportation costs make it easier for a firm to achieve a natural –monopoly status.

A.) True

B.) False

QUESTION 4

When there are significant economies of scale, it might be more efficient to have a larger firm operating under its full capacity than having multiple firms, each operating at its peak efficiency.

A.) True

B.) False

QUESTION 5

The higher the fixed cost the lower the break-even output quantity

A.) True

B.) False

Explanation / Answer

1. True.

2. True.

3. True.

4. True.

5. False.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.