Circle of Crust Pie Five Pizzas has a frequent purchaser program, called Circle of Crust, in which patrons earn points with every purchase. With enough points, the patron's next purchase is free. How does this program alter customer decisions?


This is a form of a volume discount. Under the program, customers face a lower marginal cost of future pizzas. This lowers the price for the pizzas and induces them to make more purchases than they would otherwise.

Economics

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Economics

If Mexico has a comparative advantage in oil compared to the U.S., it means that the opportunity cost of producing oil in Mexico is

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Economics

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Fill in the blank(s) with the appropriate word(s).

Economics