A Firm's Markup Is

question 36

Multiple Choice

A firm's markup is

• A)the firm's total profit.
• B)the firm's total cost.
• C)the amount by which price exceeds marginal cost.
• D)the amount by which price equals marginal cost.
• E)the amount by which price is less than marginal cost.

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Definitions:

English Auction

A type of auction in which the price starts low and is progressively bid upwards, with the highest bid at the end winning the item.

Rational Self-Interest

The principle that individuals tend to make decisions that maximize their own utility or benefit.

Collude

To conspire or work together secretly, especially in order to cheat or deceive others.

Dutch Auction

A type of auction where the auctioneer starts with a high asking price which is lowered until some participant is willing to accept the auctioneer’s price, or a predetermined minimum price is reached.