After Selecting a Sweater on the Land's End Web Site

question 75

Multiple Choice

After selecting a sweater on the Land's End Web site, Kelly was asked to fill in details for the customer database. Kelly was given a form which required her to fill in her name, date of birth, and e-mail address. Kelly then checked a box that was next to the following statement :"Yes, I would like to receive weekly promotional information from Land's End online." Which of the following practices is evident from this scenario?

• A) e-mail hosting service
• B) e-mail spoofing
• C) catalog marketing
• D) contextual advertising
• E) permission-based e-mail marketing

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Definitions:

Natural Monopolies

Natural monopolies occur in industries where the costs of production are lowest when a single firm supplies all the output, such as utilities companies.

Welfare Loss

The decrease in economic efficiency that occurs when the optimal allocation of resources is not achieved, leading to a loss of total welfare.

Unregulated Monopoly

A market condition where a single company or entity exclusively controls a particular industry or service without any governmental restrictions or oversight.

Pure Competition

A market structure characterized by a large number of small firms producing an identical product in an industry (market area) that permits complete freedom of entry and exit. Also called price-taker markets.