A positive markup is earned by a firm if its
A) price exceeds its marginal cost.
B) marginal revenue equals marginal cost.
C) price equals marginal cost.
D) price equals average total cost.
A
You might also like to view...
The above figure shows the U.S. market for flip-flops. With international trade, U.S. consumers buy ________ flip-flops and U.S. producers produce ________ flip-flops
A) 500,000; 500,000 B) 300,000; 700,000 C) 700,000; 500,000 D) 700,000; 300,000 E) 500,000; 300,000
After the Fed makes an open market purchase of bonds, the deposit-creation process may continue only to the point where
a. the Fed reverses course and sells bonds b. the Fed changes the required reserve ratio c. all excess reserves have been converted into required reserves d. all required reserves have been converted into excess reserves e. the Fed raises interest rates
An industry that generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry.
Answer the following statement true (T) or false (F)
Which of the following founders of the United States used the infant-industry argument to support trade restrictions?
A) Thomas Jefferson B) Alexander Hamilton C) James Madison D) John Jay