Final answer:
iPhones generally have the highest markup compared to DVDs, red compact cars, and potatoes due to their brand value, technological innovation, and consumer demand. Therefore correct option is B
Step-by-step explanation:
The question involves understanding the concept of markup, which is the difference between the cost of a product and its selling price, expressed as a percentage of the selling price. Among the options given, typically, technology products like iPhones would have a higher markup compared to everyday goods such as DVDs, red compact cars, or potatoes. This is due to several factors including the perceived value of the product, brand reputation, and the innovation and technology that goes into producing a smartphone.
Potatoes are a commodity with minimal processing and branding, resulting in low markups. DVDs also tend to have lower markups due to the modest cost to produce and high competition. Compact cars, while expensive, have competitive pricing strategies in the automotive market that tend to limit their markups. On the other hand, iPhones are high-end consumer electronics with strong brand recognition and can command higher markups because consumers are willing to pay more for the latest technology and design.