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:

Single-Owner

Pertains to a business that is exclusively owned by one individual who is responsible for its operations and liabilities.

Business Organization

An entity formed for the purpose of carrying out commercial enterprise, including options such as sole proprietorships, partnerships, and corporations.

Partnership

A legal form of business operation where two or more individuals share ownership, as well as the responsibility for managing the business and the sharing of its profits and losses.

Personal Income Tax

A tax levied on an individual's income, including wages, salaries, and other earnings, by the government.