Assuming the Selling Price Is Greater Than the Total Cost

question 42

Multiple Choice

Assuming the selling price is greater than the total cost per unit,the contribution margin must increase as:

• A)both the sales price and variable cost per unit increase.
• B)the sales price per unit declines.
• C)the sales price minus the fixed cost per unit increases.
• D)the gap between the sales price and the variable cost per unit widens.
• E)the fixed cost per unit declines.

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Definitions:

Pure Monopolist

A market structure where a single firm is the sole producer of a product or service, having significant control over its price.

Economic Profit

The difference in total funds acquired and total expenditures, both straightforward and oblique, for a corporation.

Pure Monopolist

A market structure characterized by a single seller selling a unique product with no close substitutes, having complete control over its price.

Maximize Profits

The goal of increasing a firm's net income by effectively managing costs, pricing, production, and sales strategies.