Author Question: If firms are more optimistic that future profits will rise and remain strong for the next few years, ... (Read 89 times)

kaid0807 · **on:** Jun 29, 2018

If firms are more optimistic that future profits will rise and remain strong for the next few years, then

A) investment spending will remain unaffected. B) investment spending will rise and then fall.
C) investment spending will rise. D) investment spending will fall.

Question 2

Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is the per-unit price?

A) 28 B) 24 C) 12 D) 8