A Weak Transportation Infrastructure in a Developing Country Can Result

question 44

Multiple Choice

A weak transportation infrastructure in a developing country can result in:

• A) Low shipping time variability
• B) High lead time variability
• C) Lower distribution costs
• D) All of the above
• E) None of the above

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Definitions:

Consumer Surplus

The division between the total financial commitment consumers are willing to make for a product or service and the amount they actually contribute.

Price Floor

A minimum legal price set by the government at which a good or service can be sold, aiming to prevent prices from falling too low.

Consumer Surplus

The contrast between the intended financial outlay of consumers on a good or service and the payment they ultimately make.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied.