- A percentage of other sums that may be added to the total of all direct costs to determine a final price or contract sum. In construction practice, the markup usually represents two factors important to the contractor. The first factor may be the estimated cost of indirect expense often referred to as general overhead. The second factor is an amount for the anticipated profit for the contractor.
- The amount (percentage) by which price exceeds marginal cost. A profit maximizing seller facing a price elasticity of demand ? will set a markup equal to (p-c)/p=1/?. One effect of international trade that increases competition is to reduce markups.
- In WTO terminology, sometimes used for the extent to which an applied tariff exceeds the bound rate.