Which of the Following Are True Regarding Long-run Pricing Decisions

B the markup is equal to zero. Question 4 1 point Over the long run almost all spending categories are discretionary.

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Special order decisions are long-rundecisions.

. Similar to firms in perfectly competitive markets firms in monopolistically competitive markets can enter and exit the market without restriction so profits are driven to zero in the long run. Discounts are not required for receivables Business interests can be shown within other investments Assets and liabilities should be presented in order of. Ii and iii D.

C reducing competition. In the decision on whether or not to drop an unprofitable product line the product line will most likely be dropped if. 11 Which of the following is FALSE regarding the long run for a firm in monopolistic competition.

Monopolistic competition is a market structure in which few firms sell similar products. B reducing the need to change cost structures frequently. A Companies get profit from selling products only when they are the price makers.

As the chart demonstrates a markets long-run supply curve is the sum of a series of short-run supply curves in a given market. B Companies supply products as long as the price the customer is willing to pay for its products exceeds the. The product lines total fixed costs are less than the contribution margin lost from dropping the product line c.

Obviously cost needs to be one of your first considerations when making pricing decisions. A minimizing the need to monitor competitors prices frequently. All of the given answers i.

True False True Question 5 1 point Which of the following is true regarding financial statements. All of the product lines fixed costs are unavoidable b. A excess capacity exists.

This will guarantee profitability as long as you maintain. C the demand curve has shifted so that it intersects the minimum average total cost point. Prices are determined by the market subject to the constraint that costs must be covered in the long run.

Monopolistic Competition ch. 2 Which of the following would not be a factor in the. 11 12 Which one of the following statements is TRUE for BOTH perfect competition and.

AMarginal cost equals average total cost. Both quantitative and qualitative impacts should beconsidered0 1. A value chain management B enterprise resource planning C cost management D customer value management.

Which of the following statements is true of costs and pricing decisions. CPrice exceeds marginal cost. Short-Run Supply Curves While most people focus on the second half of a supply curve which has a positive slope that is not how the supply and pricing decision works in practice.

Reducing the need to change cost structures frequently. D average total cost is minimized. It is true that the long run average cost curve is comprised of all the lowest points of each of the short run average cost curves because no firm will operate at a level of higher per-unit costs in the long run than in the short run.

B Because in the long run the labour market will settle so that unemployment is. A Because in the long run government policies will ensure that unemployment is at its natural rate. 34 In monopolistic competition in the long run firms produce.

To understand how short-run profits for a perfectly competitive firm will evaporate in the long run imagine the following situation. The long run average cost curve makes the assumption that the firm has selected the best factor mix possible in terms of the production of outputs. DThe firms economic profit equals zero.

A balance of market forces and cost is important when making pricing decisions. The simplest pricing models use a cost plus approach in which you add a standard percentage to your costs to determine your price. Helping build buyer-seller relationships.

Which of the following explains why the long-run Phillips curve is drawn as a vertical line. The contribution margin lost from dropping the product line is less than the fixed costs avoided. For long-run pricing decisions using stable prices has the advantage of.

Whether or not the company has excess capacity is seldom a consideration for special order decisions. Prices are based on costs subject to the constraint that customers and competitors will exert an influence. D helping to build buyer-seller relationships.

The sales price of a special order should never be below the priceoffered to regular customers. 20 The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as. 33 In the long run monopolistically competitive firms produce where.

BPrice equals average total cost. Entry and exit to and from the market are the driving forces behind a process that in the long run pushes the price down to minimum average total costs so that all firms are earning a zero profit. Minimizing the need to monitor competitors prices frequently.

For long-run pricing decisions using stable prices has the advantage of a. No business can sustain itself when costs exceed sales.

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