Which of the following statements is true of costs and pricing decisions?
A) Companies get profit from selling products only when they are the price makers.
B) Companies supply products as long as the price the customer is willing to pay for its products exceeds the price that is charged by the competitor.
C) Companies supply products as long as there is a demand for the product in the market regardless of the price at which the products are sold.
D) Companies supply products as long as the revenues from selling the additional units exceed the cost of producing them.

Question

Quizplus · Accepted Answer

The statement that is true is that Companies supply products as long as the revenues from selling the additional units exceed the cost of producing them. This is because companies need to cover their costs and make a profit, and they will continue producing and selling products as long as they are making enough money to do so. This is known as profit maximization. Choices A, B, and C are not necessarily true as they only consider certain factors and do not take into account the overall profitability of the company.

Which of the Following Statements Is True of Costs and Pricing