The Most Indirect Channel for Consumer Products Incorporates Agents, Wholesalers

question 19

Multiple Choice

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

• A) are only a few large manufacturers but many small retailers.
• B) are low-cost, low unit volume goods.
• C) is too large an inventory to be carried by wholesalers.
• D) are many small manufacturers and many small retailers.
• E) are many manufacturers with a limited inventory competing for a small group of retailers.

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Definitions:

Inefficiency

The failure to use resources in the most cost-effective manner, often leading to wasted potential output.

Wheat

A cereal grain cultivated worldwide and a staple food in many parts of the world, used for making flour, bread, and other food products.

Wine

An alcoholic beverage made from fermented grapes or other fruits, with variations in taste and strength depending on the type of grape and production process.

Production Possibility Frontier

An image projecting the ultimate production capacities for a duo of items, rooted in a given assortment of inputs including resources and extra aspects.