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What would a price taker emphasize

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Problem 1: What would a price taker emphasize?

a. cost-plus pricing

b. target pricing

c. market pricing

d. retail pricing

Problem 4: Our company produces a product that is currently sold for $70 per unit. We are considering processing it further into an upgraded version of the current product. If we do so, we can sell the product for $90, we will incur additional costs of $407,500, and we can sell 20,000 units. Which of the following is true?

a. Sell now at $70 since doing so will maximize operating income.

b. Process further because operating income will increase by $5,000.

c. Process further because operating income will increase by $7,500.

d. Process further because operating income will increase by $8,000.

Reference no: EM132807146

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