If it costs $8 to produce a certain product and the product sells for $9, then
a. the markup is approximately 11.1 percent
b. the market for this product must be monopolistic
c. the markup is $1
d. firms in this industry should shut down to minimize their losses
e. the revenue gained from the last unit produced is $1
C
You might also like to view...
Price elasticity of demand is measured using percentage changes. Why?
What will be an ideal response?
Which of the following will cause the demand curve for gasoline to shift leftward?
a. a decrease in the price of gasoline b. an increase in the price of gasoline c. a leftward shift of the supply of gasoline d. a rightward shift of the supply of cars e. a decrease in the price of bicycles
The long-run aggregate supply curve occurs at the level of real GDP consistent with
A. the natural rate of unemployment. B. low levels of inflation. C. no inflation. D. individuals' tastes and preferences.
If the percentage change in quantity demanded is less than the percentage change in price, then demand is said to be elastic.
a. true b. false