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:

Bonds Dated

The date specified in the bond document when the bond was issued, important for determining interest payments and maturity.

Fair Value

An estimate of the price at which an asset would be bought or sold in a current transaction between willing parties, not under compulsion.

Market Price

The prevailing market rate at which transactions for assets or services are conducted.

Investment Sold

The act of divesting an asset or security, converting an investment back into cash or its cash equivalent.