Solved

Two Soft Drinks Sit Side-By-Side in a Grocery Store: a Six-Pack

Question 390

Multiple Choice

Two soft drinks sit side-by-side in a grocery store: A six-pack of Coca-Cola (a brand name) sells for $3.00,while a six-pack of Uncle Don's cola (not a brand name) sells for $1.50.In a typical day the store sells some of each type of cola,which suggests that


A) no rational consumer would spend twice as much for Coca-Cola as he would for Uncle Don's cola.
B) some consumers must perceive that Coca-Cola is a higher quality product.
C) Coca-Cola has no incentive to maintain the quality of its product just because of the Coca-Cola brand name.
D) None of the above is correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents