VRM Cars Is a Custom Car Shop That Buys and Sells

question 5

Multiple Choice

VRM Cars is a custom car shop that buys and sells modified cars. It also provides customers with the option of adding more features to the models available in the market. In this scenario, VRM Cars deals in _____.

• A) intangible goods
• B) nondurable goods
• C) complementary goods
• D) durable goods

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Definitions:

Production Costs

The total expenditure involved in manufacturing a product or delivering a service, including raw materials, labor, and overhead expenses.

Total Revenue

The total income generated by a business from the sale of goods or services before any expenses are subtracted.

Sales Quantity

Sales quantity is the total amount of units of a product or service sold during a specific period.

Marginal Revenue

The additional income earned by selling one more unit of a good or service; it can vary depending on the current level of output and market conditions.