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:

Salary Allowances

Predetermined amounts provided to employees, on top of their basic salary, for specific purposes such as travel, housing, or food.

Market Value

The ongoing rate for buying or selling a product or service in a trading environment.

Book Value

The net value of an asset or liability according to its balance sheet account balance, accounting for factors like depreciation.

Note Payable

A written promissory note in which one party agrees to pay another party a definite sum of money either on demand or at a specified future date.