Ezybuy is a newly opened chain of departmental stores that offers its customers free home delivery for purchases above $100.If this promotional policy increases the cost borne by the seller by $10 for every transaction, while each customer values this service at $3, it can be said to generate economic value.

Question

Quizplus · Accepted Answer

The cost of the promotional policy ($10 per transaction) exceeds the value that each customer places on the service ($3). Therefore, it does not generate economic value.

Ezybuy Is a Newly Opened Chain of Departmental Stores That