Tony Notes That an Electronics Store Is Offering a Flat

question 56

Multiple Choice

Tony notes that an electronics store is offering a flat $20 off all prices in the store. Tony reasons that if he wants to buy something with a price of $50, then it is a good offer, but if he wants to buy something with a price of $500, then it is not a good offer. This is an example of:

• A)inconsistent reasoning; saving $20 is saving $20.
• B)the proper application of the Cost-Benefit Principle.
• C)rational choice because saving 40% is better than saving 4%.
• D)inconsistent reasoning because prices are sunk costs.

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Definitions:

Media Companies

Organizations involved in the production, distribution, or broadcasting of media content.

Mergers and Acquisitions

Business activities where companies are bought, sold, or combined to improve competitiveness, expand operations, or enter new markets.

Western Media Companies

Organizations based in the Western world, particularly in Europe and North America, that produce and distribute content such as news, entertainment, and information.

Exporting Content

The process of distributing digital or traditional media content beyond its original market for wider consumption.