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 ago
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