A Method of Classification That Describes How Many Different Types

question 101

Multiple Choice

A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a

• A) product mix.
• B) service level.
• C) product variety.
• D) store composition.
• E) merchandise line.

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Definitions:

Kinked Demand Curve

A theory in economics suggesting that prices for a product have a tendency to stay stable because competitors will match price decreases but not price increases.

Administered Prices

Prices that are set by an authority, such as a government or agency, rather than being determined by market forces.

Profit-Maximizing Firm

A business entity whose primary goal is to achieve the highest possible profit from its operations.

Marginal Cost

The cost added by producing one more unit of a product or service, a key concept in economics determining optimal production levels.