Management Gets Two Numbers (Price and Quantity) from One Decision

question 179

Multiple Choice

Management gets two numbers (price and quantity) from one decision because

• A)the marginal utility of goods is fixed.
• B)producers use both technical and financial information.
• C)the demand curve consists of price and quantity pairs.
• D)the average cost curve has only one low point.

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Definitions:

Fair Competition

refers to a marketplace where businesses operate under rules that prevent monopolies and ensure equal opportunities for all participants.

Factor Payment

Financial compensation given to the factors of production—namely labor, capital, and resources.

Rent

A payment made by a tenant to a landlord for the use of a property or space.

Capitalism

Capitalism is an economic system characterized by private ownership of the means of production, market-based allocation of resources, and the creation of goods and services for profit.