Since few firms are able to develop exact curves of cost and revenue:
A) it is countervailing power which determines both unit costs and selling prices, and thus profits.
B) it is very difficult to earn a positive return on the book value of invested capital.
C) they make rough but reasonably informed guesses in setting price.
D) they automatically select the usual 30 percent markup.
E) they proceed in a manner not specified above.
Correct Answer:
Verified
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Figure
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Figure
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