The term Mark-up refers to________________?
Correct answer: C. Both of them
- A. Rise in the price of an item for sale
- B. An amount added to cost price in calculating selling price
- C. Both of them
- D. All of them
Explanation
A mark-up is the amount added to the cost price to obtain the selling price, and it represents the resulting increase over cost. Thus both descriptions express the idea of a mark-up.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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