Maintained Markup Refers to

question 339

Multiple Choice

maintained markup refers to

• A) the difference between the final selling price and the retailer's cost.
• B) the amount subtracted from the cost the retailer paid for a product to reach the initial selling price.
• C) the amount the manufacturer adds to achieve the desired suggested retail price.
• D) the net margin.
• E) the highest price listed on the product sales ticket.

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Definitions:

MC

Marginal Cost, which refers to the increase or decrease in the cost of producing one additional unit of a good or service.

ATC

stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced; it combines average fixed and variable costs.

MR

Stands for Marginal Revenue, which is the additional income received from selling one more unit of a product or service.

Short Run

A time period in economics during which at least one input is fixed, limiting the ability of the economy or firm to adjust to changes in demand or supply.