BM1101 Business Economics (PRD2 A 2025/26) Course Materials & Test Answers | moodle4.city.ac.uk

Betty's Bakery bakes fresh bread every morning. Any bread not sold by the end of the day is thrown away. A loaf of bread costs Betty $2.00 to produce, and she prices loaves of bread at $3.50 per loaf. Suppose near the end of one day Betty still has 12 loaves of bread on hand. Which of the following is correct?

Betty should only sell the remaining bread for $3.50 per loaf since that is the regular price.

Betty should only sell the remaining bread for $2.00 per loaf or more since that is what the bread costs to make.

Betty should just throw the bread away and change the price of her bread starting tomorrow to make sure she sells all of her bread each day.

Betty should be willing to sell the remaining bread for any price above $0 per loaf since she will have to throw it away if she does not sell it for something.

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BM1101 Business Economics (PRD2 A 2025/26)

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