Cost of production plus a fixed rate of profit is called ?
Correct answer: A. cost plus
- A. cost plus
- B. Cost effective
- C. End price
- D. Consumer price
Explanation
Cost-plus pricing adds a predetermined profit margin to the cost of producing the good. This is why the resulting price is called cost plus.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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