Question: 1. Describe the difference between fixed costs and variable costs. 2. What is meant by a price ceiling? Describe the logic of considering a product's

1. Describe the difference between fixed costs and variable costs.

2. What is meant by a price ceiling? Describe the logic of considering a product's VTC to be its price ceiling.

3. What is meant by a price floor? Describe the logic of considering a product's variable costs to be its price floor.

4. What is a pioneer advantage? Describe some examples of market conditions that would make a pioneer advantage possible. Why does a pioneer advantage support a penetration strategy?

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