Consider a College That Has Only Ever Had One On-Campus

question 41

Multiple Choice

Consider a college that has only ever had one on-campus bookstore.Over the last two years you have observed that book prices are 20% lower.You conclude that

• A) the cost of producing books must have fallen.
• B) the college ordered the bookstore to lower prices.
• C) competition from online stores has encouraged the bookstore to behave as an insecure monopolist.
• D) fewer students are opting to buy books and supply has decreased.

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Definitions:

Ultimate Consumers

The people who use the products and services purchased for a household. Also called consumers, buyers, or customers.

Organizational Buyers

Entities such as businesses, governments, and institutions that purchase goods and services for organizational purposes.

Not-for-Profit Organizations

Organizations that operate for purposes other than making a profit, typically focusing on social, educational, charitable, or cultural objectives.

Institutional Buyers

Organizations or entities such as schools, hospitals, and governments that purchase goods or services in large quantities, often at negotiated prices.