Which of the Following Best Explains Why Prices Tend to Be

question 110

Multiple Choice

Which of the following best explains why prices tend to be inflexible even when demand changes?

• A)Government regulations limit the number of times a firm can change prices in a year.
• B)In most industries the profit-maximizing price does not change even when demand changes.
• C)Production costs do not tend to change when a firm varies its level of output.
• D)Firms may be reluctant to change prices for fear of setting off a price war or losing customers to rivals.

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Definitions:

Psychosocial Development

A theory proposed by Erik Erickson that suggests an individual's development is influenced by social experiences across eight stages of life from infancy to late adulthood.

Promoting Health

Activities or practices focused on encouraging and maintaining health and well-being, rather than just treating disease.

Learning New Skills

The process of acquiring new abilities or knowledge through practice, study, or experience.

Cognitive Development

The process by which an individual learns, acquires knowledge, and develops the ability to reason and understand their world.