Question: Jack sets up a new hat store. His initial start - up costs are $ 1 5 , 0 0 0 plus he pays $
Jack sets up a new hat store. His initial startup costs are $ plus he pays $ for every hat he stocks. Jack then decides to sell each hat for $ in the hopes of bringing a lot of customers with his low prices. What do you know for sure about Jack's business?
Choose the correct answer below.
A He will never make money because he is charging his customers less than it costs him to stock his store.
B He will be hugely successful because everyone needs a new hat on occasion.
C He will be hugely successful because he is offering highquality products at a low price
D He will never make money because people will assume that $ hats are too cheap and will fall apart easily.
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