At a Ski Resort Located Over One Hour from the Nearest

question 103

Multiple Choice

At a ski resort located over one hour from the nearest large town, there is only one grocery store and it charges prices more than 200% percent above the typical retail prices. In the long run, we would expect that:

• A) another store will open that will charge equally high prices since competition is low.
• B) the store will continue to earn high profits even in the long run since the size of the market is small.
• C) demand will decrease since people will not want to pay the high prices.
• D) another store will open that will charge lower prices.

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Hormone Replacement

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