Firms That Charge a Price for Their Output in Excess

question 3

Multiple Choice

Firms that charge a price for their output in excess of marginal cost in the short run

• A)are not maximizing profits.
• B)cannot find buyers for their output.
• C)are charging a markup.
• D)will suffer huge losses.

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Definitions:

Investing

The process of distributing funds with the aim of earning a return or profit.

Operating

Refers to the functioning or management of operations within a business or computer environment.