Which of the following is true about costs?
A) Costs never influence prices because they do not affect supply.
B) The higher the cost of producing the product,the greater the quantity supplied.
C) As companies increase supply,the cost of producing the product initially declines but eventually increases.
D) Managers set prices to maximize profits and they do not set prices that make the products attractive to consumers.
E) Companies supply products as long as selling additional units is lower than the cost to produce those products.
Correct Answer:
Verified
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Q15: The cost-based approach is also called:
A)cost-plus.
B)direct-plus.
C)market-plus.
D)strategic-plus.
E)consumer-plus.
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