Most companies that sell CDs by mail deliver in 1 to 2 weeks.Mosey Music Inc.takes 4 weeks to deliver CDs.Which of the following is likely to be true in this case?
A) Mosey Music will lose all its customers.
B) Mosey Music will not lose customers because the good in question is CDs, which has substitutes.
C) Mosey Music will have to charge more for its CDs to make up for the business it loses through slow delivery.
D) Mosey Music will have to charge less for its CDs to compete with firms that deliver CDs faster.
E) Mosey Music will be able to charge the same amount for its CDs as other firms do as long as the quality of the CDs is the same.
Correct Answer:
Verified
Q8: The benefit of the production of capital
Q9: If Arnold has a positive rate of
Q10: Banks and other financial institutions _
A)channel savings
Q11: The rate of time preference is positive
Q12: Which of the following does not reflect
Q14: What increases with saving?
A)production
B)consumption
C)interest rates
D)time
E)uncertainty
Q15: Explanations for a positive rate of time
Q16: Increased saving today means _
A)more consumption today
Q17: Saving is _
A)helpful for production but not
Q18: Explanations for a positive rate of time
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