Firms Do Not Change Prices Frequently Because

question 118

Multiple Choice

Firms do not change prices frequently because:

• A)there are legal prohibitions against doing so.
• B)it is easier to change the quantity of capital used in production.
• C)it is costly to do so.
• D)customers will refuse to patronize firms that change prices frequently.

Identify and classify costs as fixed, variable, mixed, or step-variable.

Calculate and understand the impact of changes in activity levels on various cost components and total costs.

Apply the concept of the contribution margin in business decision-making.

Develop proficiency in calculating average costs per unit for variable and fixed cost components within the relevant range.

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Definitions:

Anger

Anger is an emotional state that varies in intensity from mild irritation to intense fury and rage, often triggered by perceived wrongs or frustrations.

Surprise

An emotional state or feeling caused by an unexpected event or piece of information.

Happiness

A state of well-being and contentment characterized by positive emotions ranging from contentment to intense joy.

Cultural Display

The manifestation and exhibition of the cultural practices, artifacts, and values of a society, often to convey social identity.