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Which of the Following Is Not a Problem Associated with Fair-Return

Question 12

Multiple Choice

Which of the following is not a problem associated with fair-return pricing?


A) there may be no incentive to reduce production costs
B) it is difficult to decide on an adequate rate of return on investment
C) it is difficult to accurately draw a demand curve for the product
D) the firm may not face a downward-sloping demand curve

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