Which of the Following Is True About Short-Run and Long-Run

question 173

Multiple Choice

Which of the following is true about short-run and long-run pricing decisions?

• A)Short-run decisions include pricing for a special order with no long-term implications.
• B)Short-run decisions typically have a time horizon of six months or less.
• C)Long-run decisions include pricing a main product in a major market.
• D)All of the answers are correct.

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Definitions:

Monopolist's Pricing

The strategy used by a monopoly to determine the price of its product, often maximizing profits by controlling supply and determining demand.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Socially Unproductive

Activities or behaviors that do not contribute to, or may detract from, societal welfare or economic efficiency.

Consumer Surplus

The disparity between what consumers are prepared and capable of paying for a product or service, and what they end up paying in reality.