There Are Two U

question 144

Multiple Choice

There are two U.S.locations where your company is currently the only producer of soda.You currently make 40 in each location,but Pepsi is entering the markets.What decision should you make? (The chart applies for each location)

• A)Price low
• B)Price high
• C)There will be no difference in pricing low vs.pricing high
• D)Cannot make a decision until Pepsi makes a decision

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Definitions:

Money Supply

The entire amount of cash and cash equivalents present in an economy at a designated time, including money in the form of coins, notes, and funds held in checking and savings accounts.

Money Multiplier

A factor that quantifies the amount of additional money that can be created in a bank's lending process for a given amount of reserves.

Excess Reserves

Excess reserves are the capital reserves held by a bank or financial institution in excess of what is required by regulators, central bank, or other financial authority.

Opportunity Cost

Missing out on potential opportunities from different choices when opting for a single alternative.