Multiple Choice
The optimal markup on variable cost:
A) increases as unit sales become more sensitive to price.
B) decreases as unit sales become more sensitive to price.
C) is not affected by the price sensitivity of a product's sales volume.
D) is equal to [ed/(1 + ed) ] + 1, where ed is the price elasticity of demand.
Correct Answer:
Verified
Correct Answer:
Verified
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