If a Cost Complement Is 0.8,that Means _____

question 91

Multiple Choice

If a cost complement is 0.8,that means _____.

• A)the firm has a gross margin of 80 percent
• B)80 cents of each retail sales dollar covers the merchandise cost
• C)stock shortages are 20 percent of sales
• D)the firm is profitable

---

Definitions:

Elasticity of Supply

A measure of how the quantity supplied of a good responds to a change in the price of that good, defined as the percentage change in quantity supplied divided by the percentage change in price.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good.

Income Elasticity

A measure of how much the demand for a product changes with a change in consumers' income.