MGTA02H3 : Detailed

42) Also from the information presented in the article, if we were to learn that CanFer was to announce a “buy 10 tons of fertilizer, get the 11" ton free" promotion, we might expect the other producers to: a) Close down their businesses... since it just isn't worth it to compete with those prices Come up with much more generous pricing promotions, likely starting a pricing war Do nothing, wait for CanFer to lose money from the promotion Match Can Fer's promotion with a similar initiative of their own.

44) The price of coffee beans rises on the international market by 7%. Because of its higher raw material costs, The Highland Creek Coffee Shop raises the price of its regular sized coffee by 5%. At the same time, Starbucks raises the price of its coffee at all of its Canadian locations by 9%. This kind of pricing decisions would suggest these businesses are engaged in: a) b) perfect competition a monopoly an oligopoly monopolistic competition