If it costs $8 to produce a certain product and the product sells for $9,then
A) the markup is approximately 11.1 percent
B) the market for this product must be monopolistic
C) the markup is $1
D) firms in this industry should shut down to minimize their losses
E) the revenue gained from the last unit produced is $1

Question

Quizplus · Accepted Answer

Markup is the difference between the selling price and the cost price. In this case, the markup would be $1 ($9 - $8).

If It Costs $8 to Produce a Certain Product and the Product