Old Navy has a discount store in a rundown neighborhood and charges about half what they charge for the same merchandise in a more fashionable neighborhood.The best explanation for why they charge less in the rundown neighborhood is that
A) they pay less rent.
B) their customers can't afford to pay any more.
C) they don't have to bother advertising.
D) they are maximizing their profits at the prices they are charging.
Correct Answer:
Verified
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