Even Though It Often Does Not Result in Profit Maximization

question 247

Multiple Choice

Even though it often does not result in profit maximization, some small firms use a cost-plus pricing strategy anyway because

• A)it is easy to use.
• B)they do not understand what marginal revenue and marginal cost mean.
• C)it is expensive to hire an economist who can determine what the profit-maximizing price is.
• D)they sell several products, each of which sells for a different price. The time and expense involved in finding the profit-maximizing price for each product are not worth the effort.

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Definitions:

Parenting

The process of promoting and supporting the physical, emotional, social, and intellectual development of a child from infancy to adulthood.

Early Childhood

A developmental stage spanning from birth to 8 years characterized by rapid physical, cognitive, and social growth.

Junior High School

An educational institution for children who are in the grades between elementary school and high school, often encompassing grades 7-9.

Gay and Lesbian Parents

Same-sex couples who are raising children together, whether through birth, adoption, or as step-parents.