Which of the Following Statements Is True

question 75

Multiple Choice

Which of the following statements is true?

• A) The more elastic the demand, the higher the profit-maximizing markup.
• B) The more elastic the demand, the lower the profit-maximizing markup.
• C) The higher the marginal cost, the lower the profit-maximizing price.
• D) The higher the average cost, the lower the profit-maximizing price.

---

Definitions:

Minimal Effort

The least amount of energy or work expended to achieve a task or objective.

Political Tactics

Strategies used within an organization to gain advantage or support for one's goals or interests.

Institutionalization

Institutionalization is the process through which certain practices, relationships, or norms become established and accepted as a part of society or organization's culture.

Power

Refers to the capacity or ability of an individual or group to influence or control the actions and outcomes within an organization or society.