40) In most cases, prices are set by the
A. competitive market
C. selling company
D. largest competitor
41) Prices are set by the competitive market when
A. there are no other producers capable of manufacturing a similar item
B. the product is specially made for a customer
C. a product is not easily distinguished from competing products
D. a company can effectively differentiate its product from others
42) A company must price its product to cover its costs and earn a reasonable profit in
A. its early years
B. all cases
C. the short run
D. the long run
40) C is the right answer. However, it really depends on the situation. In perfect competition prices are set ...
The solution goes into a great amount of detail regarding the question being asked. Step by step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.