For Over 10 Years, Erudite, a Publishing and Educational Company

question 72

Multiple Choice

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own Web site to sell its books. This change in channel organization is called ________.

• A) disintermediation
• B) intensive distribution
• C) brokering
• D) franchising
• E) selective distribution

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Definitions:

Leisure

Time spent away from work and essential domestic activities, often used for relaxation, hobbies, and personal enjoyment.

Marginal Revenue Product Curve

A graphical representation that shows the additional revenue generated from deploying one more unit of a specific resource or input, holding all other factors constant.

Variable Capital

The portion of capital represented by expenditures on items such as wages, materials, and fuel, which vary directly with the level of production.

Wage Rate

The wage rate is the amount of compensation a worker receives per unit of time worked, often expressed per hour or per year.