Which of the Following Types of Retailers Obtain Surplus Merchandise

question 141

Multiple Choice

Which of the following types of retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-oriented goods at low prices?

• A) specialty stores
• B) warehouse clubs
• C) off-price retailers
• D) department stores
• E) hypermarkets

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Definitions:

Production Function

An equation that describes the maximum amount of output that can be derived from a set number of inputs.

Diminishing Marginal Product

The principle that says the marginal product of a factor of production decreases as the quantity of the factor is increased, holding all else constant.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of production and the cost per unit of production decrease.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production.