MachineTools

question 82

Multiple Choice

MachineTools.com sells grinders,boring mills,and engine lathes.Its website lists products from over 700 machinery manufacturers,2,500 distributors of new equipment,and 650 dealers of used inventory for sale.MachineTools.com relies on a well-established channel of manufacturers,distributors,and machinery dealers to provide the merchandise that is sold through this

• A)Internet government channel.
• B)virtual marketing channel.
• C)World Wide Web channel.
• D)mediated channel.
• E)electronic marketing channel.

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Definitions:

Profit-Maximizing Rule

A principle stating that profit maximization occurs when a firm's marginal cost equals its marginal revenue.

Perfectly Competitive

Describes a market structure where many firms sell identical products, there are no barriers to entry or exit, and all firms are price takers.

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been designed for, leading to inefficiencies.

Average Total Costs

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