Toot Sweets Bakery sells freshly baked muffins from 6.30 am at $1.20 per muffin. By 4 pm, the remaining muffins are marked down to $0.60 each. Which of the following statements is true?
A) Toot Sweets is trying to minimize its loss.
B) Toot Sweets engages in price discrimination; a higher price for those who cannot wait and a lower price for those willing to wait until 4 pm.
C) Toot Sweets has underestimated the demand for its muffins.
D) Toot Sweets is trying to prevent the opportunity to make arbitrage profit.
Ans: A) Toot Sweets is trying to minimize its loss.
You might also like to view...
In the above figure of a monopolistically competitive firm, the marginal cost of the last unit produced is equal to ________ and is ________ marginal revenue
A) P2; greater than B) P3; greater than C) P1; greater than D) P1; equal to
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called
A) unnatural unemployment. B) seasonal unemployment. C) structural unemployment. D) cyclical unemployment. E) frictional unemployment.
Which of the following is not an advantage of the corporate structure over proprietorship and partnership forms of business organization?
a. Stockholders in the corporation have limited liability, whereas proprietors or partners have unlimited liability. b. Ownership rights of a corporation may be transferred more easily. c. Large investment funds are more easily attracted by the corporation. d. Corporations are less likely to suffer from the principal-agent problem.
If there is an increase in taxes on business firms in a small open economy, it causes the current account to ________ and the equilibrium quantity of saving to ________.
A. rise; remain unchanged B. rise; fall C. fall; fall D. fall; remain unchanged