Retailers in the United States make enormous added profits from Black Friday sales."
Do you agree with this statement? Why or why not? Think about how retailers lower their prices for Black Friday deals. How can they make added profits if they are receiving less money for each product they sell? What about retailers operating in markets that are purely competitive, or very close to it? Do they have the ability to make "enormous added profits?" Finally, suppose you are interested in a particular digital camera. You discover that it is on sale at Best Buy for $149 on Black Friday. You also discover it is on sale at Wal Mart for $149. What incentive, if any, can you think of for these companies to provide the same good for the same sale price?