GDP Increases If Prices Decrease by ________ and Quantities Produced

question 72

Multiple Choice

GDP increases if prices decrease by ________ and quantities produced increase by ________.

• A) 2%; 4%
• B) 2%; 2%
• C) 4%; 2%
• D) 3%; 1%
• E) 3%; 3%

Understand the principles of special orders and their impact on pricing and profitability.

Comprehend the cost-plus approach to product pricing, including the calculation of markup percentages.

Analyze the implications of accepting individual customization orders on profitability.

Determine the relevance of sunk costs and their exclusion from future business decisions.