A Practical Approach Which Is Frequently Used by Managers When

question 137

True/False

A practical approach which is frequently used by managers when setting normal long-run prices is the cost-plus approach.

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Definitions:

Equilibrium Price

The cost at which the supply and demand for goods are equal.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period.

Quantity Supplied

The quantity of a service or good that is available for sale by producers who are ready and able to sell at a particular price, over an agreed period.

Quantity Demanded

The cumulative total of a good or service that customers intend and can afford to buy at a set price level.