Which of the Following Is a Difference Between Storage Warehouses

question 3

Multiple Choice

Which of the following is a difference between storage warehouses and distribution centers?

• A) Storage warehouses are used to store agricultural products, while distribution centers are used to store nonagricultural products.
• B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.
• C) Storage warehouses are always owned by a producer, while distribution centers are rented.
• D) Storage warehouses are more likely to use newer, computer-controlled systems, while distribution centers generally use outdated materials-handling methods.
• E) Storage warehouses are exclusively used by government agencies, while distribution centers are exclusively used by private businesses.

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Definitions:

Producer Surplus

The difference between the amount a producer receives from the sale of a product and the minimum amount they would be willing to accept for that product; essentially a measure of producer profitability and well-being.

Market Price

The existing cost for acquiring or disposing of an asset or service in a designated market.

Competitive Market

A market structure characterized by many buyers and sellers, freedom of entry and exit, and products that are similar, leading to competition driving prices to equilibrium.

Lowest Price

the minimum price at which a product or service is offered in the market.