A retailer who adds a 50 per cent 'markup' to the price charged to them by a wholesaler could best be described as using a __________ based pricing model?
A) demand
B) cost
C) competition
D) marginal analysis
E) None of the options listed.

Question

Quizplus · Accepted Answer

describe the principles of pricing based on cost and revenue analysis. In the cost-based pricing approach, a percentage or dollar amount is added to the cost of the product in order to determine its selling price, shown in the example given.

A Retailer Who Adds a 50 Per Cent 'Markup' to the Price