When Individual Firms Set Their Own Prices-Sometimes Holding Them Steady

question 54

Multiple Choice

When individual firms set their own prices-sometimes holding them steady for long periods of time-rather than letting daily market forces determine prices, such prices are called:

• A) flexible prices.
• B) parallel prices.
• C) equilibrium prices.
• D) administered prices.
• E) fixed prices.

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Definitions:

Unit Product Cost

The cost incurred to produce a single unit of product, inclusive of direct materials, direct labor, and manufacturing overhead.

Job T687

This could refer to a specific task, project, or product order within a job costing system, identified by the number T687.

Selling Price

The price at which a product or service is offered for sale to customers.

Unit Product Costs

The overall expense incurred to manufacture a single product unit, encompassing direct materials, direct labor, and distributed overhead costs.