Which of the Following Is True of a Conventional Distribution

question 67

Multiple Choice

Which of the following is true of a conventional distribution channel?

• A) It has each channel member acting as a separate business unit trying to maximize its own profits.
• B) It consists of producers selling their products directly to customers without the use of intermediaries.
• C) It has one channel member owning the other channel members.
• D) It is a distribution channel where a producer is owner of all the other channel members.
• E) It has all members of the channel working together as a single organization.

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Definitions:

Total Cost

The combined total of all costs associated with generating goods or services, covering both fixed and variable expenses.

Price of Labor

The wage rate paid to employees, essentially the cost of labor to employers.

AVC Curve

A graph that shows the average variable costs of production at different levels of output.

Variable Resource

An input or factor of production whose quantity can be changed easily by a firm as its output level changes.