Question

A convenience store is generally able to charge and obtain a higher price for its candy bars than Wal-Mart because the convenience store:

A) Has lower costs
B) Offers better quality
C) Has a smaller market share
D) Provides a more convenient location

Answer 1

A convenience store typically charges higher prices for candy bars than Wal-Mart due to the added convenience of its locations for customers seeking quick and easy access.

Step-by-step explanation:

A convenience store is generally able to charge and obtain a higher price for its candy bars than Wal-Mart because the convenience store provides a more convenient location. This convenience in location often justifies higher prices due to the added value for customers who prioritize time and ease of access over price. Contrary to the convenience store’s strategy, a messenger company that delivers packages around a city may experience lower operating costs when the price of gasoline drops, allowing them to supply more of their services at any given price, potentially leading to higher profits and an increased supply of services.