Gap Sells Jeans That Cost $21

question 16

Multiple Choice

Gap sells jeans that cost $21.00 for a selling price of $29.95. The percent of markup based on cost is:

• A) 42.62%
• B) 46.26%
• C) 49.88%
• D) 48.9%
• E) None of these

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Definitions:

Oligopoly

A market structure characterized by a few firms dominating the market.

Mutual Interdependence

A situation in an economy where the actions of one participant significantly affect the outcomes of other participants, commonly seen in oligopolistic markets.

Monopolistic Competition

A market structure characterized by many firms offering products or services that are similar but not perfect substitutes, leading to a degree of market power.

Oligopoly

An economic setup in which a handful of companies possess substantial influence on determining market prices and competitive dynamics.