Why do some companies use the same markup percent as each other?

Question

Multiple choice question.

Because their operating expenses are alike

So that they can "fix" the prices in order to make a large profit

Because their gross margins are similar

Because of longstanding traditions left over from the early twentieth century

Answer 1

The correct answer is:

Because their gross margins are similar

This is often the case, as companies in the same industry may have similar costs and pricing strategies, leading them to use comparable markup percentages to maintain competitive pricing and consistent profit margins.