Old Navy has a discount store in a rundown neighborhood and charges about half what they charge for the same merchandise in a more fashionable neighborhood. The best explanation for why they charge less in the rundown neighborhood is that
A. they pay less rent.
B. their customers can't afford to pay any more.
C. they don't have to bother advertising.
D. they are maximizing their profits at the prices they are charging.
D. they are maximizing their profits at the prices they are charging.
Economics
You might also like to view...
By law, banks are required to
A) hold 100 percent of customer deposits as reserves. B) hold a fraction of demand deposits as reserves. C) hold a fraction of their reserves at the Federal Reserve bank. D) lend out no more than the amount of their required reserves.
Economics
Which of the following is NOT one of the economic problems that the "New Economy" is alleged to have solved?
A) deflation B) slow growth in productivity C) the budget deficit D) business cycle
Economics