Question

Jack sets up a new hat store. His initial start-up costs are $13,000 plus he pays $3 for every hat he stocks. Jack then decides to sell each hat for

$1 in the hopes ofbringing a lot of customers with his low prices. What do you know for sure about Jack's business? A. He will never make money because he is charging his customers less than it costs him to stock his store. O B. He will be hugely successful because he is offering high-quality products at a low price. OC. He will never make money because people will assume that $1 hats are too cheap and will fall apart easily. OD. He will be hugely successful because everyone needs a new hat on occasion.

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