Final answer:
The statement that break-even analysis assumes no discounts for large orders is false. Suppliers often provide discounts on bulk purchases, which can impact the break-even analysis and should be considered for accurate financial planning.
Step-by-step explanation:
The statement that a decision maker using break-even analysis must assume that suppliers do not provide discounts for large orders is false. Break-even analysis typically focuses on the point at which total costs equal total revenues. However, in reality, suppliers often provide discounts for large orders, which can lower the costs of goods sold, thus affecting the break-even point. The purpose of incorporating such discounts is to reflect more accurate costing and financial planning. If these discounts are significant, they can change the break-even quantity, making it necessary for the decision maker to adjust their analysis accordingly.
The statement “In the goods market, no buyer would be willing to pay more than the equilibrium price” is false. In a competitive market, the equilibrium price is determined by the intersection of the demand and supply curves. At the equilibrium price, the quantity demanded is equal to the quantity supplied. However, buyers may be willing to pay more than the equilibrium price if they value the product or service highly.