A positive markup is earned by a firm if its
A) price exceeds its marginal cost.
B) marginal revenue equals marginal cost.
C) price equals marginal cost.
D) price equals average total cost.
A
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Social Security provides incentive for individuals to
(a) save more than they consume during their working years. (b) manage their assets privately in order to prepare to live on principal and interest during retirement. (c) rely on transfer payments made by the working class to them during retirement. (d) carefully manage their private retirement portfolios and use the income earned to consume and save during retirement.
The theory of regulatory behavior that predicts that the "regulators" eventually will become controlled by the "regulated" is called
A) the capture hypothesis. B) the the share-the-gains, share-the-pains hypothesis. C) the asymmetric information hypothesis. D) the market failure hypothesis.