Long-Run Pricing

question 204

Multiple Choice

Long-run pricing:

• A)needs to cover only incremental costs
• B)only utilizes the market-based approach to pricing and not the cost-based approach
• C)is a strategic decision
• D)strives for flexible pricing that can respond to temporary changes in demand

---

Definitions:

Welfare Payments

Government-provided financial assistance to individuals or households, typically aimed at supporting those who are unemployed, disabled, or on a low income.

Efficiency Loss

The reduction in economic welfare or efficiency that occurs when a market does not allocate resources optimally, often due to externalities or market power.

Demand Curves

A visual depiction showing how the price of a product relates to the amount people want to buy.

Supply Curves

Graphical representations of the relationship between the price of goods and the quantity that producers are willing to supply.