What is the most likely reason that snack foods sold in vending machines are so much more expensive than snack foods sold in grocery stores?
A. Snack foods sold in vending machines come in smaller packages, so the per-package costs are higher.
B. Grocery stores buy in bulk, while vending machine companies tend to buy in smaller quantities.
C. People who purchase snack foods from vending machines tend to have less elastic demand for snack foods.
D. Owners of vending machine companies are greedier than owners of grocery stores.
Answer: C
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Which of the following occurs during a recession?
a. Output rises, employment rises and unemployment falls. b. Output falls, employment falls and unemployment rises. c. Output rises, employment falls and unemployment falls. d. Output rises, employment rises and unemployment rises. e. Output rises, employment rises and tax revenues fall.
Explain why the long-run product price for a perfectly competitive firm will equal its minimum average total cost
What will be an ideal response?
Refer to the above figure. Which of the following statements is TRUE?
A. Panel A shows a change in quantity demanded and Panel B shows a change in demand. B. Panel A shows a decrease in demand and Panel B shows an increase in demand. C. Both Panels A and B show an increase in demand. D. Panel A shows a change in demand and Panel B shows a change in quantity demanded.
If exchange rates end up in the right ranges, the free market will drive each country to shift resources into those sectors in which it enjoys a comparative advantage.
Answer the following statement true (T) or false (F)