All the Following Explain Price Stickiness Except

question 11

Multiple Choice

All the following explain price stickiness except

• A)firms choose not to adjust prices until they can assess if changes in sales are temporary or permanent.
• B)the more firms produce, the lower the average cost of production.Therefore, firms are willing not raise prices as long as they can sell more.
• C)firms may be concerned that consumers may be angered by price increases.
• D)firms may be concerned that their rivals may not match their price increases.

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Definitions:

Extra Capacity

Additional production or service ability that exceeds normal operations requirements.

Late Night Shift

A work shift that takes place during the late evening to early morning hours, often outside standard business hours.

Minimum Requirements

The least or lowest acceptable standards or quantities needed to achieve a specific goal or function.

FCFS

First Come, First Served, a method of service or resource allocation where requests are processed in the order that they were received.