Question
In: Economics
he firm's markup is the amount by which _______ at the equilibrium quantity. A. price exceeds...
he firm's markup is the amount by which _______ at the equilibrium quantity.
A.
price exceeds marginal cost
B.
price exceeds average total cost
C.
average total cost exceeds average variable cost
D.
marginal cost exceeds average total cost
Solutions
Expert Solution
The correct answer is 'Option A'.
The markup is the amount by which the price of a product exceeds the marginal cost of production. It is the profit earned per unit. It can be calculated as:
Markup = Price - Marginal Cost
Therefore, the correct answer is 'Option A'.
Rahul Sunny answered 2 years agoRelated Solutions
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