An entrepreneur approaches you about how to sell their new writing pens to consumers. The pens have a unique benefit—they are more comfortable to use than traditional pens. The entrepreneur is concerned that the retailers they have approached want to buy the pens at $10 apiece and then sell the pens in their stores at $18 to consumers.

The entrepreneur is dismayed at the extra $8 the retailers are getting and has decided to sell the product directly to consumers for $10. The entrepreneur wants to know your opinion. What do you think? Why? LO 1-4