Author Question: A group of firms are selling undifferentiated products if A) consumers perceive the products ... (Read 766 times)

madam-professor · **on:** Jul 1, 2018

A group of firms are selling undifferentiated products if

A) consumers perceive the products identical between the firms.
B) production costs are the same for all firms.
C) the firms are selling goods that are identical, though consumers view them as different.
D) the firms are part of a single cartel.

Question 2

What is the Degree of Operating Leverage?

What will be an ideal response?

poopface · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

A

Answer to Question 2

It is an elasticity formula which calculates the percentage change in profit resulting from some percentage change in the level of operation (output and sales).