1.. Pertaining to the basics in Managerial Economics, which of the following statementsis falseas we relate to the study of managerial economics (hint: think about management's internal and external environments)?

Select one of a, b, c, d or e if present

a. While managers must understand how output prices are determined, determination of input prices is

irrelevant because it is beyond the manager's control

b. Input prices influence a firm's costs of production.

c. Output prices influence a firm's revenues.

d. Price determination is the key element in any market-economy system.