The Bookstore on Your College Campus Uses a Cost-Based Pricing

question 58

Multiple Choice

The bookstore on your college campus uses a cost-based pricing approach with a 50% markup percentage. A new textbook has a wholesale price of $200. What will you be charged for the textbook?

• A) $300
• B) $100
• C) $250
• D) $50

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Definitions:

Tax Revenue

The income that is collected by governments through taxation, which supports public spending and services.

Government

The organization, or system by which a community or nation is governed, responsible for creating and enforcing laws.

Consumer Surplus

The offset between what customers are willing and able to pay for a service or product and what they actually expend.

Consumer Surplus

The distinction between the ideal spending amount of consumers on a good or service and their actual expenditure.