A Positive Markup Is Earned by a Firm If

question 75

Multiple Choice

A positive markup is earned by a firm if

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

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Definitions:

Inborn Features

Traits or characteristics present in an individual from birth, resulting from genetic inheritance.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic nervous system's fight or flight response.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements through control of skeletal muscles.

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's "fight or flight" response to stress or perceived threats.