Consider the argument: Price-match guarantees are bad for consumers because they eliminate any incentive for competitors to reduce prices. When you think it through, it's obvious that they eliminate price competition; ACME wouldn't win any of Globex's customers by offering a discount if Globex will give the same discount. The argument is extended; that is, there's a main argument and an argument for one of the premises. What is the main conclusion? O ACME wouldn't win any of Globex's customers by offering a discount if Globex will give the same discount. o Ensuring that customers will pay the lowest available price is good for consumers. O Price-match guarantees eliminate any incentive for competitors to reduce prices. O Price-match guarantees are bad for consumers.

Consider the argument: Price-match guarantees are bad for consumers because they eliminate any incentive for competitors to reduce prices. When you think it through, it's obvious that they eliminate price competition; ACME wouldn't win any of Globex's customers by offering a discount if Globex will give the same discount. The argument is extended; that is, there's a main argument and an argument for one of the premises. What is the main conclusion? O ACME wouldn't win any of Globex's customers by offering a discount if Globex will give the same discount. o Ensuring that customers will pay the lowest available price is good for consumers. O Price-match guarantees eliminate any incentive for competitors to reduce prices. O Price-match guarantees are bad for consumers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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