A Firm's Markup Is

question 184

Essay

A firm's markup is
A) the difference between average total cost with and without advertising.
B) the difference between demand and marginal revenue.
C) a signal of product quality.
D) the difference between price and marginal cost.
E) the result of producing less than the efficient scale.

• A) the difference between average total cost with and without advertising.
• B) the difference between demand and marginal revenue.
• C) a signal of product quality.
• D) the difference between price and marginal cost.
• E) the result of producing less than the efficient scale.

---

Definitions:

Direct Cause

An immediate factor or event that directly leads to an outcome or effect.

Respondeat Superior

A legal doctrine holding that an employer is responsible for the actions of employees performed within the course of their employment.

Subpoena Duces Tecum

Latin; a legal document that requires the recipient to bring certain written records to court to be used as evidence in a lawsuit.

Malfeasance

The performance of an act that is unlawful or wrongful by a public official or other person in power.