If There Is a Sole Producer of a Good,and He

question 63

Multiple Choice

If there is a sole producer of a good,and he faces no threat of competition,it is likely that:

• A)government intervention could increase total surplus.
• B)he is acting inefficiently.
• C)he is charging an inefficiently high price.
• D)All of these are true.

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Definitions:

Target Costing

A pricing strategy wherein prices are determined based on what consumers are willing to pay, and then costs are worked backward to ensure profitability.

Causal Relationship

A connection between two variables where a change in one directly causes a change in the other.

Percentage of Sales

The percentage of sales method relates various financial figures as a percentage of a company's total sales, used for analysis and forecasting.

Forecasting

Forecasting involves making predictions about future events or trends based on historical data and analysis, often used in financial planning, supply chain management, and strategic planning.