Break-even analysis usually assumes all of the following except: ...

[jc611]

Break-even analysis usually assumes all of the following except:
 a. in the short run, there is no distinction between variable and fixed costs.
  b. revenue and cost curves are straight-lines throughout the analysis.
  c. there appears to be perfect competition since the price is considered to remain the same regardless of quantity.
  d. the straight-line cost curve implies that marginal cost is constant.
  e. both c and d

Question 2

In the problem of double marginalization, the resulting price is lower than if
 a. The manufacturer were to sell directly to the consumer
  b. The manufacturer and the retailer were to merge
 c. All of the above
 d. None of the above

[Smiles0805]

Answer to Question 1

a

Answer to Question 2

d

[jc611]

Gracias!

[recede]

TYSM