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The Kraft Heinz Company sells ketchup to two markets, the retail grocery market and the restaurant market. Kraft Heinz charges restaurants a lower price than

The Kraft Heinz Company sells ketchup to two markets, the retail grocery market and the restaurant market.

Kraft Heinz charges restaurants a lower price than grocery stores.

(1) Under what circumstances would charging restaurants a lower price than grocery stores benefit Kraft Heinz? Explain why and how this pricing strategy benefits Kraft Heinz versus charging just one price.

(2) Kraft Heinz labels the bottles of ketchup it sells to restaurants "not for resale".Why does Kraft Heinz do that and how does this benefit Kraft Heinz?

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