Chain-markup pricing traces demand-minus pricing calculations from the final consumer to middlemen to suppliers.

Question

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Chain-markup pricing is a method of pricing in which the final price of a product is determined by adding a markup to the cost of the product at each stage of the supply chain. This means that the price of the product to the consumer is the sum of the cost of the product to the supplier, plus the markup of the middleman, plus the markup of the retailer.

Chain-Markup Pricing Traces Demand-Minus Pricing Calculations from the Final Consumer