All of the Following Statements About Standard Markup Pricing Are

question 235

Multiple Choice

All of the following statements about standard markup pricing are true EXCEPT:

• A)high-volume products usually have smaller markups than do low-volume products.
• B)The percentage markup depends on the type of retail store and the product involved.
• C)markups must cover all expenses of the store,pay for overhead costs,and contribute something to profits.
• D)summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price.
• E)supermarket managers have such a large number of products that estimating the demand for each product as a means of setting price is impossible.

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Definitions:

Necessity

Essential goods or services required for basic living and welfare of individuals.

Luxury

High-quality goods or services that are not essential but are highly desired and associated with wealth or indulgence.

Substitutes

Goods or services that can be used in place of each other to satisfy consumer needs or desires.

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that producers are willing to sell at each price level.