The figure shows the demand curve for Gap jackets (D), and Gap's marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).
-In the figure above, what is Gap's markup?

Question

Quizplus · Accepted Answer

Gap's markup is the difference between the cost of the shirt and the selling price. The cost of the shirt is $50, and the selling price is $65. Therefore, Gap's markup is $65 - $50 = $15.

The Figure Shows the Demand Curve for Gap Jackets (D)