Which statement is true about cost-volume profit (cvp) analysis? a. cvp analysis allows managers to do sensitivity analysis by examining the impact of various prices or cost levels on profit. b. cvp analysis shows how revenues, expenses, and profits behave as volume changes. c. cvp analysis is a powerful tool for planning and decision making. d. cvp analysis can be used in both single-product and multi-product firms. e. all of these statements are true.

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold