Cost Is Equal to 100% When Markup Is Based on the Cost

question 42

True/False

Cost is equal to 100% when markup is based on the cost.

---

Definitions:

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, often leading to imbalances and inefficiencies in markets, especially insurance.

Insurance Company

A business that provides coverage, in the form of compensation following a loss, in exchange for premium payments.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.

Norman Daniels

A philosopher known for his work in health ethics, particularly his theories on justice, health, and healthcare.