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Oksanka [162]
3 years ago
11

An independent gas station sits beside a busy highway. Half of its customers are travelers passing through the area. On a sign i

n front of the gas station two price
tiers are advertised for the same grades of gasoline. Gasoline purchased with cash is 20 cents per gallon less than gasoline purchase with a credit card.
Why would the gas station charge more for purchases made with a credit card?

To offset processing fees charged by credit card companies

To protect credit card users from ID theft

To bring in more customers

To discourage the use of credit cards
Business
2 answers:
SSSSS [86.1K]3 years ago
7 0

<u>Answer:</u>

<u />

It would be "To offset processing fees charged by credit card companies".

<u>Explanation:</u>

It wouldn't make sense to protect credit card users from ID theft, since that is taken care of at the credit card company's level.

This specific discount wouldn't necessarily bring in more customers since half the demographic is probably either cash or credit card anyway.

Lastly, credit card companies due charge fees for the use of credits cards, so a company would use this tactic out of fairness for it's customers and the profit of the business.

lakkis [162]3 years ago
3 0

Answer:

Could be the first and the last, if you are to choose more than one. If only one, I would choose the last one.

Explanation:

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Answer and Explanation:

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3 years ago
Paul consumes only books and DVDs. At his current consumption​ bundle, his marginal utility from DVDs is 23 and from books is 5.
Paul [167]

Answer:

Paul is not maximizing his utility because MUd/Pd is greater than MUb/Pb

Explanation:

Marginal utility is the extra satisfaction derived from spending an additional unit of money on consuming a particular product or service.

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Utility is maximized when MUd/Pd is equal to MUb/Pb and Paul has exhausted his budget.

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