Which of the following statements about markups is true?
A. It's easier for a producer to administer the prices consumers pay for products if the markup used varies from one intermediary to the next.
B. The lower the markup, the lower the profit.
C. A firm can lose money even when using a high markup.
D. Markup percentages are computed as a percentage of the cost of the product.
E. None of these statements is true.
Answer: C
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