What might happen if a car dealership

is awarded a bonus by the manufacturer

for selling a certain number of its cars

monthly, but the dealership is just short of

that quota near the end of the month?

a. It may sell the remaining cars at huge

discounts to hit the quota.

b. It creates an incentive to sell cars from

different manufacturers.

c. It would ruin the relationship between

the dealer and the manufacturer.

d. Potential buyers will lose buying

power at the dealer.

 

 Why might a supermarket advertise low

prices on certain high-profile items and sell

them at a loss?

a. It is a way for companies to be

charitable.

b. The store will sell other groceries

to the same customers, often at a

markup.

c. It would not.

d. This reduces the incentives of trade.