If firms and workers could predict the future price level exactly, the short-run aggregate supply curve would be
A) downward sloping. B) horizontal.
C) upward sloping. D) vertical.
Question 2
Book publishers often use a cost-plus pricing strategy. One reason for this is
A) bookstores, not publishers, ultimately determine how many books will be produced.
B) much of the cost of publishing textbooks is difficult to assign to any particular book.
C) publishers do not want to incur the expense of determining the profit-maximizing strategy. They prefer cost-plus pricing because of its lower cost.
D) most publishers do not hire economists who can determine the number of books they must sell to equate marginal cost and marginal revenue.
