Apple Used to Be in the Business of Manufacturing Only

question 66

Multiple Choice

Apple used to be in the business of manufacturing only, but then it opened Apple stores.This is an example of which of the following?

• A) revenue sharing
• B) forward integration
• C) franchising
• D) backward integration

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Definitions:

Economic Profit-Maximising

The strategy of adjusting the output and pricing of goods or services to achieve the highest possible profit, taking both explicit and implicit costs into account.

Total Revenue

The entire amount of income generated by the sale of goods or services before any expenses are subtracted.

Total Cost

The complete amount of expenses incurred in the production or acquisition of goods or services, including direct and indirect costs.

Variable Cost-Plus

A pricing strategy that sets the selling price based on the variable costs of producing an item plus a fixed mark-up.