As shown in Figure 4.1 in text book...which of the following is not a simplifying assumption?
A) Firm's products or services are homogeneous
B) only one group of customers
C) there are costs which are not the responsibility of the customer
D) the firm possess some monopolistic power

Question

As shown in Figure 4.1  in text book...which of the following is not a simplifying assumption?
A) Firm's products or services are homogeneous
B) only one group of customers
C) there are costs which are not the responsibility of the customer
D) the firm possess some monopolistic power

Quizplus · Accepted Answer

The assumption that there are costs which are not the responsibility of the customer does not simplify the analysis of a firm's market behavior or structure. Simplifying assumptions typically involve homogeneity of products, a single type of customer, or monopolistic power to reduce complexity in analysis.

As Shown in Figure 4