One Way to Promote a New Business Is to Offer

question 82

Multiple Choice

One way to promote a new business is to offer free items.If you were to open a new restaurant and offer free food,you likely would have a line out the door.How would an economist understand the behavior of those standing in line?

• A) Those waiting in line place a high value on the use of their time.
• B) Those waiting in line believe that the marginal cost of waiting in line exceeds the marginal benefit of waiting in line.
• C) Those waiting in line place a low value on the use of their time.
• D) Those waiting in line believe that the marginal cost of waiting in line is zero.
• E) Those waiting in line believe that the marginal benefit of waiting in line is zero.

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Definitions:

Urgent Search Warrant

A legal document, often expedited, authorizing law enforcement to conduct a search of a premise as part of an investigation.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, foreign countries, and Indian tribes.

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The network of relationships and associations between businesses and individuals within a professional context, which can facilitate opportunities and strategic partnerships.

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A legal doctrine that allows federal law to supersede or preempt state or local laws in certain areas, based on the Supremacy Clause of the U.S. Constitution.