-The figure above shows the situation facing Smart Digit, Inc., a firm in monopolistic competition that produces calculators. The firm's markup is _______ per calculator.

Question

Quizplus · Accepted Answer

The markup is the difference between the price and the marginal cost. In this case, the price is $10 and the marginal cost is $4, so the markup is $10 - $4 = $6.

-The Figure Above Shows the Situation Facing Smart Digit, Inc