For a firm that uses mark- up pricing and aims to achieve a particular level of total profit, its supply curve will be

Name: For a firm that uses mark- up pricing and aims to achieve a particular level of total profit, its supply curve will be
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Mark-up pricing involves setting prices above the average (total) cost to achieve a desired profit margin. As output increases, economies of scale may reduce the average cost, causing the gap between the supply curve and the average cost curve to narrow.

For a Firm That Uses Mark- Up Pricing and Aims