Use the Figure Below to Answer the Following Questions

question 9

Multiple Choice

Use the figure below to answer the following questions. Figure 13.2.5
-Refer to Figure 13.2.5.The figure shows the situation facing Smart Digit,Inc. ,a firm in monopolistic competition that produces calculators.The firm's markup is ________ per calculator.

• A)zero
• B)$2
• C)$4
• D)$6
• E)$10

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Definitions:

Depreciation

The process by which assets lose value over time due to wear and tear or obsolescence.

Savings

The portion of an individual's or entity's income that is not spent on current expenditures and is instead reserved for future use or investment.

Disposable Income

Money available to families for savings and expenses after accounting for income taxes.

C+ I

An economic term representing total consumption (C) and investment (I) in an economy, key components of the gross domestic product (GDP).