What Type of Intermediary Act as a Storage Firm Allowing

question 80

Multiple Choice

What type of intermediary act as a storage firm allowing small operations to pick up the goods desired?

• A) Full-service merchant wholesalers
• B) Drop shippers
• C) Limited-function merchant wholesalers
• D) Rack jobbers
• E) Merchant wholesalers

Assess the effect of external changes (such as price changes or external costs) on the perceived benefits and costs associated with an activity.

Distinguish between constant, increasing, and decreasing marginal costs and benefits.

Calculate total profit or benefit given data on marginal costs and benefits.

Evaluate decisions using the concept of opportunity cost and sunk costs.

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Definitions:

Fixed Rate

An interest rate that remains unchanged throughout the entire term of the loan, mortgage, or bond.

Derivative Security

A financial security whose value is dependent upon or derived from one or more underlying assets.

Hedging

Reducing a firm’s exposure to price or rate fluctuations. Also immunization.

Economic Exposure

The risk that a company's cash flow, earnings, or future value will be affected by changes in exchange rates.