In 1989,Sears and Roebuck Closed Its Stores and Remarked Every

question 127

Multiple Choice

In 1989,Sears and Roebuck closed its stores and remarked every price in its stores to reflect a new "lower everyday" pricing strategy.Sears must have believed at that time that

• A)the profit from extra sales were less than additional menu costs.
• B)the menu costs were less than the gain in profits from additional sales.
• C)extra liquidity was more important than menu costs.
• D)B and C.

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Definitions:

Centimeters

A unit of length in the metric system, equal to one hundredth of a meter.

Inches

A unit of length in the Imperial and US customary systems, equal to 1/12 of a foot.

Yards

A unit of measurement equal to 3 feet or 0.9144 meters.

Feet

A unit of linear measurement equal to 12 inches or 0.3048 meters, used primarily in the United States for measuring height or distances.