Suppose a roll of paper towels costs $5 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 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 $3 and is $6 to Big Supplies, which of the following is true?
A) It is more expensive for the consumer to buy the paper towels at Big Supplies.
B) It is cheaper 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 Big Supplies.
D) The consumer is indifferent as to where they buy the paper towels.
D) The consumer is indifferent as to where they buy the paper towels.
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Compared to the private sector, the distinguishing characteristic of government is its
What will be an ideal response?
An individual is endowed with $100 of income in period 1, and will receive an income of 121 in period 2. The interest rate is 10%, and there are only 2 periods. The maximum second period consumption is
a) 100 b) 121 c) 221 d) 231 e) 233.1
For a monopolistic competitive firm, which of the following is TRUE in the long run?
A. P = ATC. B. P = MC. C. ATC is minimized. D. all of these