The Optimal Markup on Variable Cost

question 12

Multiple Choice

The optimal markup on variable cost:

• A) increases as unit sales become more sensitive to price.
• B) decreases as unit sales become more sensitive to price.
• C) is not affected by the price sensitivity of a product's sales volume.
• D) is equal to [ed/(1 + ed)] + 1, where ed is the price elasticity of demand.

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Definitions:

Legacy

Assets or money passed on to heirs in a will, or a system/software inherited from the past.

Uniform Probate Code

A set of laws intended to simplify the process of transferring assets upon death, and to standardize and modernize probate law across states.

Probate Laws

The body of law that governs the process through which a deceased person’s estate is properly distributed to heirs and designated beneficiaries, and any debt owed to creditors is paid off.