It Makes Sense for Wendy's to Advertise Its New Menu

question 222

Multiple Choice

It makes sense for Wendy's to advertise its new menu that allows customers to choose fruit or salad as a substitute for French fries in its values meals, as long as doing so raises:

• A) revenue by more than it raises the cost of advertising.
• B) any revenue at all.
• C) costs.
• D) revenue by less than the cost of advertising.

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Definitions:

Frederic Bastiat

A 19th-century French economist and writer known for his advocacy of free trade and his witty criticisms of protectionism and socialism.

Adam Smith

A Scottish economist, philosopher, and author, often considered the father of modern economics known for his theories on free markets and the 'invisible hand' guiding economies.

Free Trade

An economic policy that allows imports and exports with little to no government tariffs, quotas, or subsidies, aiming to enhance global economic efficiency.

Balance of Trade

The difference in value between a country's imports and exports over a certain period, indicating how much more goods and services a nation exports than it imports.