If a Firm Has No Variable Costs, the Profit-Maximizing Price

question 12

True/False

If a firm has no variable costs, the profit-maximizing price is also the revenue-maximizing price.

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Definitions:

Intuition

Intuition involves understanding or knowing something instinctively, without the need for conscious reasoning.

Algorithms

A set of rules or procedures to be followed in calculations or problem-solving operations, often used by computers.

Overconfidence

A cognitive bias that causes someone to overestimate their abilities, performance, the level of control they have, or their level of knowledge.

Divergent Thinking

An approach or process designed for the creation of inventive ideas through the investigation of various available alternatives.