Markup

question 36

Multiple Choice

Markup

• A)does not exist in monopoly.
• B)does not exist in monopolistic competition.
• C)exists in perfect competition.
• D)is the difference between price and average total cost.
• E)exists in both monopoly and monopolistic competition.

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Definitions:

Business Risk

The exposure a company or investor faces due to uncertainties in the operating environment, impacting its profitability.

Contribution Margin

The selling price per unit, minus the variable cost per unit, indicating the contribution towards covering fixed costs and profit.

Business Risk

The potential for loss or failure in a business operation due to factors like market conditions, financial instability, or operational challenges.

Financial Risk

The possibility of losing money on an investment or business venture, including market risk, credit risk, liquidity risk, and operational risk.