Economists Assume That

question 63

Multiple Choice

Economists assume that

• A)individuals behave in unpredictable ways.
• B)consumer behavior is explained by the existence of unlimited resources.
• C)people put other people's interests ahead of their own.
• D)optimal decisions are made at the margin.

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Definitions:

Mark-up

The difference between the cost price and selling price of an item, expressed as a percentage of the cost.

Retail Price

The total cost at which a product is sold to the consumer, including overheads, profit margins, and taxes.

Markdown

A reduction from the original or retail price of goods to increase sales or clear inventory.

Competitor

An individual or company that competes against others for the same market share or audience in an industry.