Youre in a store like REI, Cabelas, or Bass Pro Shops that specializes in selling outdoor clothing

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You’re in a store like REI, Cabela’s, or Bass Pro Shops that specializes in selling outdoor clothing and accessories. On the front of a rack of rain jackets, you see one with a price tag of $400 and think, “Why does the store even put this jacket on the rack? Hardly anyone would pay that much for just a rain jacket. Doesn’t the store understand opportunity cost? By putting that jacket on the rack, it doesn’t have room for an affordable jacket that more customers are likely to buy.” Identify the concept from this chapter that can explain why the store puts such an expensive jacket on a rack.  

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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