What method of inventory valuation should be used for economic decision-making problems?
a. book value
b. original cost
c. current replacement cost
d. cost or market, whichever is lower
e. historical cost
Question 2
Double markup problems arise when
a. upstream firms have no market power
b. downstream firms have no market power
c. upstream and downstream products are unrelated in demand
d. upstream and downstream firm's pricing decisions tend to decrease the demand for the other product
