In 1989, Sears and Roebuck closed its stores and remarked every price in its stores to reflect a new "lower everyday" pricing strategy. Sears must have believed at that time that
A) the profit from extra sales were less than additional menu costs.
B) the menu costs were less than the gain in profits from additional sales.
C) extra liquidity was more important than menu costs.
D) B and C.
B
You might also like to view...
Lisa is spending all of her income on compact discs and downloadable games for her smart phone. She finds that the marginal utility from the last compact disc she buys is 30 and the marginal utility from the last downloadable game is 10
The price of a compact disc is $15 and the price of a downloadable game is $5. Lisa should A) increase her consumption of compact discs. B) increase her consumption of downloadable games. C) not change her consumption of downloadable games and compact discs. D) decrease the price of downloadable games.
Congress created the Federal Reserve System in 1913 as the institution delegated to administer
A) monetary policy to stabilize the economy. B) the constitutional power of Congress to "coin money and regulate the value thereof." C) collect taxes for the federal government. D) the minting of coins.
In an open economy, desired domestic lending
A) must equal desired domestic borrowing. B) must equal desired domestic borrowing plus the amount of international lending. C) is always greater than desired domestic borrowing. D) is always less than desired domestic borrowing.
A financial market panic that causes US depositors to withdraw their funds from Chinese banks, would cause a(n)________ in the demand of US dollars and a(n) _________in the supply of the Chinese Yuan
a. Increase; Increase b. Increase; Decrease c. Decrease; Increase d. Decrease; Decrease