Different store to purchase red beans and rice is two cents

Assignment Help Business Economics

Reference no: EM13999692

Suppose that three groceries sell Bubba's Gourmet Red Beans and Rice. Bullseye market is able to acquire, stock, and market them for $2.00 per package. OKMart can acquire, stock, and market them for $1.98 per package. SamsMart can acquire, stock, and market them for $1.96 per package. Suppose that each day, equal numbers of customers begin their shopping at each of the three stores. If the cost of going to a different store to purchase red beans and rice is two cents, where will customers purchase red beans and rice? Where will they not?

Consumers shop at both SamsMart and Bullseye, but not OKMart.

Consumers only shop at SamsMart, since it has the lowest price.

Consumers shop at both SamsMart and OKMart, but not Bullseye.

Consumers shop at all three stores, since the cost of going to a different store is equal to the difference in price of two cents.

Reference no: EM13999692

Questions Cloud

Collective bargaining agreement : Choose a current or recent labor contract (collective bargaining agreement) negotiation in the U.S. airline industry. Summarize the state of the negotiations, major issues, and resolution, if any. Utilize industry publications and authoritative newsp..

Economist tell stories as the vending machine story : Economist tell stories as the vending machine story:

Equilibrium in oligopoly is different from market structures : Equilibrium in oligopoly is different from other market structures because:

The market under cournot competition increases : If the number of firms in the market under Cournot competition increases:

Different store to purchase red beans and rice is two cents : Suppose that three groceries sell Bubba's Gourmet Red Beans and Rice. Bullseye market is able to acquire, stock, and market them for $2.00 per package. OKMart can acquire, stock, and market them for $1.98 per package. If the cost of going to a diffe..

Under stackleberg competition between two firms : Under Stackleberg competition between two firms, if both firms have the same marginal cost:

Example of stackelberg competition : Which of the following is an example of Stackelberg competition? GlaxoSmithKline and Pfizer compete in the HIV drug market by annually announcing their production quotas during the second week of January. Natura Pet Products introduced the first grai..

Required to submit a prospectus outlining the experiment : Mid-term you will be required to submit a prospectus outlining the experiment you wish to conduct. The prospectus should include an introduction, a motivation for the project, a brief literature review as well as a statement of the research question ..

Price elasticity of demand for tea using midpoint formula : The initial price of a cup of tea is $1, and at that price, 400 cups are demanded. If the price falls to $0.90, the quantity demanded will increase to 500. Calculate price elasticity of demand for tea using the midpoint formula. Calculate the (point)..

User Account

All Pages