Bart Operates a Lemonade Stand in Front of His House

question 15

Multiple Choice

Bart operates a lemonade stand in front of his house. His father works at the Springfield Nuclear Power Plant. Which of the following is most likely to be true?

• A) The long run is the same for the power plant as it is for the lemonade stand.
• B) The long run is longer for the power plant than it is for the lemonade stand.
• C) The long run is shorter for the power plant than it is for the lemonade stand.
• D) We cannot compare the long runs because these are different businesses.
• E) It's impossible for the power plant short run to be shorter than the lemonade stand's long run.

---

Definitions:

Price Setting

The process of determining the selling price of a product or service, based on factors such as cost, demand, and competitive prices.

Loss-Leader Pricing

A pricing strategy where a product is sold at a loss to attract customers to profitable items.

Retailers

Businesses that sell goods or services directly to end consumers for personal or household use.

Discounts

A reduction applied to the normal selling price of goods or services, offered to stimulate sales or attract customers.