Economists Use a ___________________ Framework to Explain How the Prices

question 17

Multiple Choice

Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system.

• A) opportunity
• B) marginal cost
• C) supply-and-demand
• D) anti-monopoly

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Definitions:

Merchandising Company

A Merchandising Company is a business that purchases finished products and sells them at a profit, without altering the products themselves.

Cost Structure

The composition of a company’s costs, including fixed and variable costs, which impacts its profitability and pricing strategy.

Variable

A variable is an element, feature, or factor that is liable to vary or change; in business, it often refers to costs that fluctuate with the level of production or sales.

Fixed

Pertains to costs that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.