A Positive Markup Is Earned by a Firm If

question 289

Multiple Choice

A positive markup is earned by a firm if

• A) its price exceeds its marginal cost.
• B) marginal revenue equals marginal cost.
• C) price equals marginal cost.
• D) price equals average total cost.

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Definitions:

Default

The failure to fulfill an obligation, especially the failure to make payments on a loan.

Treasurer

An officer in an organization responsible for managing the organization's financial affairs, including the custody and disbursement of funds.

Obligation

A legal or moral duty to do something or refrain from doing something.

Liable

Legally responsible for something, usually resulting in a requirement to compensate for harm or damage caused.