High Markups on a Product Could Lead to Low Profits

question 71

Multiple Choice

High markups on a product could lead to low profits when

• A) competitors have higher markups.
• B) there are no substitutes.
• C) demand is inelastic.
• D) sales dip due to high prices.
• E) supply is inelastic.

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Definitions:

Masculinized

To imbue or influence with masculine characteristics or properties.

Outgroup

“Them”—those perceived as different or apart from our ingroup.

Ingroup Bias

The tendency to favor members of one's own group over those in other groups.

Implicit Racial Associations

Unconscious biases and attitudes towards different races that individuals may not be aware of.