Double markups refer to the tendency of the:
A)manufacturer and the distributor to increase the product's price above the average cost.
B)manufacturer to increase the product's price by more than twice the marginal cost.
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 the marginal cost.

Question

Quizplus · Accepted Answer

Double markups refer to both the manufacturer and distributor increasing the price of a product above the marginal cost. Option D is the only choice that represents both the manufacturer and distributor increasing prices above the marginal cost.

Double Markups Refer to the Tendency of The