Since 1938, Fareway has been a place to get and receive groceries (Fareway). Fareway has been known to be one of the biggest grocery stores here in Des Moines and continues to expand across this state and many others. Fareway is not a monopoly. There are various substitutes for different products in the store. You can buy the name brand items or you can substitute for the Fareway items that are similar to the name brand items. Fareway brand items are known as Fastco. One item that you can buy would be Lucky Charms or other name brand cereals or you can substitute the name brands to Fastco products. Fareway continues to run business during the week, but has a resting period on Sunday. The CEO, Paul Beckwith, of Fareway believes in religious beliefs and understands that no man should work seven days a week. One belief would be to rest on the seventh day and proceed with business on the following day. With the grocer business, Fareway has to sell more than one product of each item whether its name brand or store brand. One way of keeping a stale relationship between marginal cost and revenue is to continue to produce items at a lower cost and price them at a reasonable price. Fareway produces their own supplements and prices them and their own revenue. If customers were not able to buy higher priced items they can substitute those items for the store brand names and save money. This will market more customers, increase revenue, and increase production at a lower paying price. They can produce their foods at a lower cost by using fewer products and make more revenue by keeping the items at a low, budget price. Fareway is known to be in the wholesale industry (Reference for Business). Specific groceries that list them as a wholesale company are frozen foods, dairy products, meats, coffee, and other food items (Reference for Business). They also sell health and beauty items like shampoo, toothpaste, deodorant, and other health items. They provide their own...
References: Fareway. 2011. <http://www.fareway.com/index.cfm>.
Reference for Business. 2011. < http://www.warmcallcenter.com/industry.html>.
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