Double markups refer to the tendency of the:
A. manufacturer and the distributor to increase the product's price above the average cost.
B. distributor to increase the product's price by more than the manufacturer.
C. manufacturer and the distributor to increase the product's price above the marginal cost.
D. manufacturer to increase the product's price by more than twice the marginal cost.
Answer: C
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In the circular flow diagram, aggregate expenditure includes the sum of
A) saving and investment. B) consumption and investment. C) consumption, investment, and saving. D) income and saving.
During the Great Depression:
A) By 1933, 25 percent of the nation's workers had lost their jobs. B) output reached its lowest level in 1929. C) the production possibilities curve shifted sharply inward, which explains the drop in output, jobs, and overall prosperity. D) firms increased output but used fewer workers.
The entrance of large numbers of "baby boomers" into the labor force in the 1970s and 1980s:
A. caused substantial reductions in permanent unemployment. B. lessened income inequality. C. increased income inequality. D. had no impact on income inequality.
In national income accounting, the consumption category of expenditures includes purchases of:
A. both new and used consumer goods. B. consumer durable goods and consumer nondurable goods but not services. C. consumer durable goods, consumer nondurable goods, and services. D. changes in business inventories.