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Discuss the importance of retailing in the U.S. economy. Retailing plays a vital role in the U.S. economy for two main reasons. First, retail businesses contribute to our high standard of living by providing a vast number and diversity of goods and services. Second, retailing employs a large part of the U.S. working population-over 15 million people.
1. To fully appreciate the role retailing plays in the U.S. economy, it may be helpful to review a selection of press articles related to the retailing industry. Search for articles pertaining to retailing. Read a selection of articles, and report your findings to the class.
2. Keep a shopping journal that details all the retail establishments you visit in a week, how long you spent in each store, how much money you spent, and the reason for your visit. At the end of the week, review your journal and analyze your relationship to retail. As a class, compile your results to get a picture of shopping habits and consumer behavior.
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Mysti Farris (see Problem 1-19) believes that there is a high probability that 120 pool cues can be sold if the selling price is appropriately set. What selling price would cause the break-even point to be 120?
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