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:

Service Company

A company that provides services to customers as its primary business operations, rather than selling tangible goods.

Inventory

Materials and products that a company holds for the ultimate goal of resale or utilization in production.

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Automobile Dealership

A business that sells new or used cars at the retail level, based on a dealership contract with an automaker.