When Using Cost-Plus Pricing, the Markup Is Added to the Job

question 194

Multiple Choice

When using cost-plus pricing, the markup is added to the job cost to help

• A)cover operating expenses.
• B)generate a profit.
• C)determine the price to charge for the job.
• D)all of the above.

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Definitions:

Long-Run Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level and the quantity of goods and services produced by an economy when all resources are fully employed.

Cyclical Unemployment

The variation in unemployment caused by the ups and downs of economic cycles, including recessions and expansions.

Recessionary Gap

A situation where an economy's actual production is less than its potential output, often leading to unemployment and underused resources.

Potential Output

The level of productivity an economy can achieve with full employment and resources utilization, without causing inflation.