Which of the Following Represents a Popular Form of Direct-Response

question 5

Multiple Choice

Which of the following represents a popular form of direct-response retailing?

• A) E-retailing
• B) Specialty store retailing
• C) Catalog showroom retailing
• D) Mail-order retailing
• E) Brokered retailing

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's production increases.

Diminishing Returns

A principle stating that as more of a variable input is added to a fixed input, beyond some point, the additional output from the additional input will decrease.

Marginal Cost

The financial outlay required to create another unit of a good or service.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of goods produced, essentially the per unit production cost.