Where Managers Use Cost Information About Outputs to Guide Pricing

question 82

Multiple Choice

Where managers use cost information about outputs to guide pricing decisions,they are likely to __________ outputs that they have under-costed,resulting in increased demand for these outputs while profit will fall.

• A)underprice
• B)overprice
• C)over-cost
• D)under-cost

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Definitions:

Federal Income Taxes

Taxes levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Adam Smith

An 18th-century Scottish economist and philosopher known as the "father of economics" and author of "The Wealth of Nations," which advocates for the free market and the division of labor.

Government's Role

The duties and activities undertaken by a government to regulate and guide the economy, society, and national defense.

Government Expenditure

The total amount of money spent by a government within a certain period, including spending on public services, welfare, and infrastructure.