Unit V Discussion

Unit V DiscussionCOLLAPSE

Firms, such as Walmart, have used a strategy where the price (marginal revenue) of certain items are intentionally set below the average total cost of production, such as grocery items. Why would firms intentionally lose money on certain goods? Do you think this strategy works? Why, or why not? Would (or does) it work on you?

Please include the name of the person or question to which you are replying in the subject line. For example, “Tom’s response to Susan’s comment.”