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Managerial Economics · End Term · 31 Aug 2025 · May 2025 term · Set QDB3

Question 2: What is the firm’s percentage markup of price over margin…

Question 2

+2 marksNumerical answer

Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of ₹40 per unit.
Based on the above data, answer the given subquestions.

What is the firm’s percentage markup of price over marginal cost (as a % of the price)? ___________

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Correct answer: 50

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Question 2 of 43 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 31 Aug 2025, in the May 2025 term (IIT M IMPROVEMENT FN EXAM QIA1 31 Aug 2025). It carries 2 marks.

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