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1. Over the past half century, the Amalgamated Metals Company -- a big firm in an oligopolistic industry -- has changed its price schedule many times in response to pricing actions initiated by an even bigger firm. Which term best describes the Amalgamated Metals Company?
a. price follower
b. price leader
c. perfect competitor
d. monopolistic competitor
2. Which of the flowing is an example of cost-plus pricing?
a. determining selling price by marking up cost to cover selling and administrative expenses
b. pricing according to the MC = MR principle
c. charging each customer the most he or she is willing and able to pay
d. assigning a higher price during peak-load times
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ALL colleges of business today also was 1st proposed as a factor of production by a classical economist less than 40 years after Adam Smith.
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