A markup chain:
A) only applies to consumer products, not to business products.
B) implies that a retailer must always apply a smaller markup than a wholesaler.
C) causes lower prices in longer channel systems.
D) determines the price structure in a channel of distribution.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

A markup chain is the successive addition of markups to the product as it moves through the different levels of the distribution channel. This determines the price structure of the product in the distribution channel. Therefore, option D is correct while options A, B, and C are incorrect. Option E is also incorrect as D is the correct option.

A Markup Chain