Double markups refer to the tendency of the:
A) manufacturer and the distributor to increase the product's price above AC.
B) manufacturer to increase the product's price by more than twice the MC.
C) distributor to increase the product's price by more than the manufacturer.
D) manufacturer and the distributor to increase the product's price above MC.

Question

Quizplus · Accepted Answer

Double markups occur when both the manufacturer and the distributor add their own markups to the product's price above the marginal cost (MC), leading to higher prices for consumers.

Double Markups Refer to the Tendency of The