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A local pet store, roscoe's rascals, which has concentrated on selling puppies, is considering adding a line of pet food. A contractor estimates that it will cost $10,000 to convert some storage space into a retail area for the food. Roscoe's Rascals will purchase the specialty food for $15 and sell it for $30. Marketing research indicates that the store will sell 900 bags. Should Roscoe's Rascals add pet food to its products? Assume that Roscoe'S Rascals decided to add the pet food. 2 months after it began selling the food, its pet food sales declined dramatically becausd of a competitor across the street started selling the identical food for $22 per bag. Should Roscoe's Rascals match the price offered by the competitor?

Microeconomics, Economics

  • Category:- Microeconomics
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