Asked by Katelynd Hayward on Jul 16, 2024
Verified
Which of the following types of firms are least likely to have their MC,AVC,and ATC curves affected by fluctuations in gasoline prices?
A) Firms like UPS that use a fleet of gasoline-powered vehicles.
B) Taxi cab and limousine companies.
C) Companies that operate bus tours to popular vacation destinations.
D) Firms like iTunes that distribute their products over the internet.
Gasoline Prices
The cost per unit volume of gasoline, typically influenced by factors like crude oil prices, taxes, and demand.
MC, AVC, ATC Curves
Graphs representing marginal cost, average variable cost, and average total cost, respectively, as functions of quantity produced.
- Assess the impact of variations in input prices on the cost structures of companies and their position in the market competition.
Verified Answer
HE
Haroon ElgabalawyJul 21, 2024
Final Answer :
D
Explanation :
Firms like iTunes that distribute their products over the internet are least likely to have their MC, AVC, and ATC curves affected by fluctuations in gasoline prices as they do not rely on gasoline-powered vehicles for their operations.
Learning Objectives
- Assess the impact of variations in input prices on the cost structures of companies and their position in the market competition.
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