The Markup Amount on a Bicycle Is $48, Which Is

question 31

Essay

The markup amount on a bicycle is $48, which is a 30% markup based on cost. What is the cost of the bicycle?

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Definitions:

Resource Scarcity

A situation where resources are limited in availability and cannot satisfy all uses and desires.

Opportunity Costs

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Equilibrium

A state in a market where supply equals demand, meaning that there is no tendency for the market price to change unless external factors alter supply or demand.

Specializing

The process by which individuals, businesses, or countries focus on producing a limited range of goods or services, to gain a competitive advantage in terms of efficiency, quality, or cost.