A local bar provides free pretzels and peanuts. Once a week it ...

[beccaep]

A local bar provides free pretzels and peanuts. Once a week it even provides chicken wings for only ten cents each. It is
 
  A) selling drinks below cost.
  B) selling pretzels, peanuts and wings below cost.
  C) unfairly competing against other local bars who are unable to do the same.
  D) almost certainly doing none of the above.

Question 2

A fair-returns price is a price set at:
 
  A) marginal cost.
  B) average fixed cost.
  C) average total cost.
  D) average variable cost.

[Jane]

Answer to Question 1

D

Answer to Question 2

C

[beccaep]

TYSM

[raenoj]

Excellent