Which of the Following Is True

question 82

Multiple Choice

Which of the following is true?

• A)If there are only two firms in a market, prices must be above marginal cost.
• B)If there is only one firm in a market, prices must be above marginal cost.
• C)all of the statements associated with this question are correct.
• D)none of the statements associated with this question are correct.

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Definitions:

Traceable Fixed Expense

A fixed cost that can be directly linked to a specific business segment or department.

Net Operating Income

The total profit of a company after all operating expenses, excluding interest and taxes, have been deducted from revenues.

Price Hike

A price hike refers to an increase in the price of goods or services, often due to factors such as increased production costs or higher demand.

Sales Forecast

An estimate of the sales volumes, and often revenues, that a company expects to achieve within a specific period.