Why would a chain store sell some items, such as soda pop, below cost?
A) They are not interested always in maximizing profit.
B) They feel people need soda pop more than the other items in the store.
C) Pricing some items below cost might be an efficient strategy to maximize the store's total profit.
D) Because most firms can only enjoy profits by consistently selling all their items below cost.
Question 2
People have a demand for liquidity because
A) liquidity increases one's options.
B) the rate of interest is positive.
C) they have confidence in their own future earning power.
D) they prefer present goods to future goods.
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