Which of the Following Best Explains Why Delicia Co

question 62

Multiple Choice

Which of the following best explains why Delicia Co. ,a manufacturer of potato chips,prices each bag of potato chips at 99 cents rather than $1.00?

• A)To encourage consumers to think the chips are less expensive
• B)To attract those consumers who are not too sure about the quality of the chips
• C)To create a signal that these chips are exceptionally fine
• D)To increase sales by offering the chips at a discounted price

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Definitions:

Fixed Cost

A charge that stays the same, no matter how much is produced or sold in terms of goods or services.

Variable Costs

Expenses that vary directly with the level of production or volume of output.

Snow-clearing

The process of removing snow from surfaces, like roads and walkways, to make them accessible and safe.

Perfectly Competitive

A market structure characterized by many buyers and sellers, all of whom have complete information and the products offered are homogeneous.