Which of the Following Best Explains Why Frito-Lay's Potato Chips

question 8

Multiple Choice

Which of the following best explains why Frito-Lay's potato chips are priced at 69 cents a bag rather than 70 cents?

• A) To encourage consumers to think these chips are less expensive
• B) To gain more consumers who are not too keen about the quality of the chips
• C) To create a signal that these chips are exceptionally fine
• D) To increase sales by giving discount offers

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Definitions:

Productive

Describes a state or quality of producing a significant amount of output per unit of input, often associated with efficiency and effectiveness in economic terms.

Capital

Resources and assets, such as buildings, machinery, and equipment, used to produce goods and services.

Average Total Cost

The total cost of production divided by the number of goods produced; it consists of both fixed and variable costs.

Mixers

Devices used in cooking and baking to blend, beat, or whip ingredients together to form a mixture.