A Builder Constructed a Home for a Cost of $200,000

question 24

Multiple Choice

A builder constructed a home for a cost of $200,000 and wishes to sell it for a profit equal to 20% of the selling price. What is the dollar amount of the profit?

• A) $50,000
• B) $40,000
• C) $16,000
• D) $ 8,000

Associate specific industries with appropriate market models based on their characteristics.

Comprehend the concept of differentiated and standardized products within various market structures.

Understand the impact of the number of firms in an industry on market models and competition levels.

Identify market models based on the level of price control within the industry.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the financial gain in excess of opportunity costs.

Brand Name

The name given to a product or service by its company to distinguish it from competitors' offerings, often protected as a trademark.

Total Market

The entire demand for a product or service within a particular industry, including all potential customers.

Differentiated Product

A product that is distinct from similar products offered by competitors due to unique features, branding, or quality.