Suppose a roll of paper towels costs $4 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $1 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $2 and is $6 to Big Supplies, which of the following is true?
A) The consumer is indifferent as to where they buy the paper towels.
B) It is cheaper for the consumer to buy the paper towels at Big Supplies.
C) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
D) It is more expensive for the consumer to buy the paper towels at Sam's Quick Stop.
C) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
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One barrier to entry into a monopoly market is:
A. the ownership of a key resource or input. B. too many competitors already in the market. C. high input costs. D. few buyers.
Back-loading of employees' wages helps a company because:
a. they act as incentives for employees to work hard throughout their tenure with the company. b. they completely eliminate all sorts of opportunistic behavior on the part of the employee throughout his/her tenure with the company. c. they reduce the actual cost burden of the employee on the company. d. they prevent opportunistic behavior on the employer's part.
In order to pass any fiscal policy measure we need a
A. two-thirds vote in both houses of Congress and the bill signed by the President. B. a majority vote in both houses of Congress and the bill signed by the President. C. a two-thirds vote in either house. D. a majority vote in either house.
One important innovation cluster mentioned in the textbook is __________, which is the world center for biotech.
A. Bangalore, India B. Cambridge, MA C. Silicon Valley, CA D. Palo Alto, CA