If It Costs $8 to Produce a Certain Product and the Product

question 170

Multiple Choice

If it costs $8 to produce a certain product and the product sells for $9,then

• A) the markup is approximately 11.1 percent
• B) the market for this product must be monopolistic
• C) the markup is $1
• D) firms in this industry should shut down to minimize their losses
• E) the revenue gained from the last unit produced is $1

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Definitions:

Prototype

An original model on which something is patterned or based.

Mental Image

A representation of sensory information or experiences in one's mind, which does not currently exist in the physical world.

Algorithmic

Pertaining to or using a step-by-step procedure or formula for solving a problem or completing a task.

Heuristic

A mental shortcut that allows people to solve problems and make judgments quickly and efficiently, often based on past experiences.