If the unit cost of output for a computer is $2,000 and if firms' average markup is 10 percent,what is the total cost to the consumer?
A) $2,000
B) $2,010
C) $2,020
D) $2,200
E) $20.

Name: If the unit cost of output for a computer is $2,000 and if firms' average markup is 10 percent,what is the total cost to the consumer? A) $2,000 B) $2,010 C) $2,020 D) $2,200 E) $20.
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Question

Quizplus · Accepted Answer

The average markup is 10%, so the price to the consumer is 110% of the unit cost:
110% of $2,000 = $2,200.

If the Unit Cost of Output for a Computer Is