Critics point out that in the stationery industry, a pen that costs fifty cents to make costs the consumer $10 to buy. This is an example of ________.

Question

Quizplus · Accepted Answer

Excessive markups refer to the practice of charging a significantly higher price for a product compared to its production cost. In this case, the markup is significant, as a pen that costs only fifty cents to make is being sold for $10 to the consumer. This practice is often criticized as it can lead to consumers paying a high price for a product that may not necessarily be worth the markup.

Critics Point Out That in the Stationery Industry, a Pen