Author Question: The textbook rejects the cost-plus-markup theory of price setting because A) business firms do ... (Read 92 times)

2125004343 · **on:** Jun 29, 2018

The textbook rejects the cost-plus-markup theory of price setting because

A) business firms do not describe their price-setting procedures as cost-plus procedures.
B) competitors and monopolists set prices in different ways.
C) it cannot explain the prices we actually observe.
D) it ignores the role of government in regulating prices.
E) no single theory can explain all price-setting.

Question 2

A merger between a firm extracting petroleum and a firm refining petroleum is a

A) conglomerate merger.
B) diagonal merger.
C) horizontal merger.
D) vertical merger.