One Way Neighborhood Grocers Can Take Advantage of Volume Discounts

question 52

Multiple Choice

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to

• A) purchase a franchise membership.
• B) become a subsidiary of a larger supermarket chain such as Kroger.
• C) join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods.
• D) create a grocery networking system to exchange coupon vouchers.
• E) participate in a retailer-sponsored cooperative with other independent grocers.

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Definitions:

Corn

A cereal plant that yields large kernels set in rows on a cob; an important crop for food, animal feed, and industrial products.

Bushel

A unit of volume used primarily in the United States for measuring agricultural commodities, equivalent to approximately 35.24 liters.

Marginal Costs

The additional cost incurred in producing one more unit of a good or service, critical in decision-making regarding production volumes.

Standby Seats

Airline or event tickets made available last minute, typically at a lower price, for customers willing to wait for no-shows or extra capacity.