A Buyer Just Paid $50

question 131

Multiple Choice

A buyer just paid $50.98 for a calculator. If 29% of that amount was the seller's markup then what did the calculator cost the seller in the first place?

• A) $19.48
• B) $35.45
• C) $25.98
• D) $36.20

Calculate and interpret the bullwhip measure to assess supply chain volatility.

Differentiate between strategies that exacerbate vs. mitigate the bullwhip effect.

Recognize the importance of information sharing and coordination in reducing supply chain risks.

Understand how to calculate dividend income from investments.

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Definitions:

Four-Firm Concentration Ratio

A measure of market structure that indicates the combined market share of the four largest firms in an industry, used to assess the level of competition.

Market Power

The ability of a firm or group of firms to manipulate prices or output in a market.

Excess Capacity

The situation where a firm or an economy is producing less than its potential output, often indicating inefficiencies or a lack of demand.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.