Resolved Question: A small Italian grocery store sells five varieties of feta cheese. It offers Bulgarian, French, Danish, Greek,?

30 July 2010, 6:30 pm

A small Italian grocery store sells five varieties of feta cheese. It offers Bulgarian, French, Danish, Greek, and one that is processed and sold from Tillamook, Oregon. The domestic variety (from Oregon) sells for $1.99/pound, while all the others sell for more than $2.99/pound, and the Greek variety is priced at $6.99/pound. The domestic variety is much cheaper because: A.Customers always perceive the domestic varieties to be of lower quality than the imported varieties. B. The value of the dollar never favors imported goods. C. Imported cheese producers often pay protective tariffs on these goods, which ultimately raises the price at the grocery store. D. The distributors of these imports refuse to buy the cheese in large enough quantities to enjoy economies of scale.... Read More »

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