Which of the Following Is an Example of a Zero-Level

question 38

Multiple Choice

Which of the following is an example of a zero-level channel?

• A) A company takes online orders from customers and ships the products to them.
• B) An organization uses a combination of direct salespeople and sales agencies to increase sales.
• C) A company sells its products through wholesalers and retailers.
• D) A company sells its products through chains of supermarkets and other large sellers.
• E) A large company forms alliances with smaller companies to increase sales coverage.

---

Definitions:

Corner Solution

Situation in which the marginal rate of substitution of one good for another in a chosen market basket is not equal to the slope of the budget line.

MRS (Marginal Rate Of Substitution)

The rate at which a consumer is willing to substitute one good for another while maintaining the same level of satisfaction.

MRT (Marginal Rate Of Transformation)

The rate at which goods or services can be transformed into other goods or services, reflecting the opportunity cost of shifting resources in production.

Marginal Rates

The additional or incremental tax rate applied to every additional dollar of income.