Suppose a Roll of Paper Towels Costs $5 at Sam's

question 147

Multiple Choice

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)The consumer is indifferent as to where they buy the paper towels.
• D)It is cheaper for the consumer to buy the paper towels at Big Supplies.

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Definitions:

Stakeholders

Individuals or groups that have an interest in the success and progression of a company, project, or endeavor.

Competitors

Entities or individuals that are in rivalry against others for the same objective, such as a market share or a race to a finish line.

Consumer Groups

Organized groups of individuals who come together to champion the rights and interests of consumers, often by advocating for safer, more effective, or less costly products and services.

Mutual Obligation

A reciprocal agreement where each party has duties or responsibilities towards the other, typically seen in contracts or social relationships.