A Grocery Store Is Running a "Buy-One-Get-Another-At-One-Half-Off" Promotion on a Dozen

question 85

Multiple Choice

A grocery store is running a "buy-one-get-another-at-one-half-off" promotion on a dozen doughnuts. So the first dozen is $6 and the second would be $3. A person would buy the second dozen if their marginal benefit from the second dozen doughnuts is:

• A) greater than $3
• B) greater than $6
• C) greater than $9
• D) less than $3

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Definitions:

Federal Reserve

The central bank of the United States, responsible for monetary policy, regulation of banks, and ensuring the stability of the financial system.

Margin Requirement

This is the minimum amount of equity that must be maintained in a margin account, as per the broker's or exchange's requirements, to cover the prospect of losing value in trades.

Underwriter's Explicit Fees

The specific charges paid to underwriters for their role in issuing and selling new securities in the market.

NYSE Specialists

Professionals on the New York Stock Exchange floor who are responsible for managing the trading and auction of particular stocks, ensuring fair and orderly markets.