Steve Owns a Store That Caters Primarily to Men and Their

question 49

Multiple Choice

Steve owns a store that caters primarily to men and their hobbies.He is contemplating greatly expanding the hunting and fishing section of the store.If he does this,he expects his fishing and hunting sales will increase,his camping gear sales will increase,and his model train sales will decrease.Which of the following should Steve include in his revenue projection for the expansion project?
I.Increase in fishing and hunting sales
II.Increase in camping gear sales
III.Decrease in model train sales

• A)I only
• B)II only
• C)I and III only
• D)II and III only
• E)I, II, and III

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Definitions:

Monopsony Power

A market condition where there is only one buyer for a product or service, giving that buyer considerable control over prices.

Professional Athletes

Individuals who compete in sporting activities at the highest level and receive payment for their performance and participation.

Professional Sports

Sporting activities or events where athletes receive payment for their performance, as opposed to amateur sports where athletes do not receive financial compensation.

Real Income

Income adjusted for price changes.