Which of These Is True About a Pair of $200

question 40

Multiple Choice

Which of these is true about a pair of $200 designer denim jeans?

• A) The manufacturer's labor to make them comprises the largest percentage of the final price, with other channel members clamoring over a mere 10 percent.
• B) Everyone gets a fair cut of the final price; the marketer will be cut off from the customer unless all channel members are profitable.
• C) The specialty retailers that sell them account for only 25 percent of the cost so that the jeans can benefit from demand pull.
• D) The final price is only this high when there is a lack of competition among cotton producers or other suppliers.
• E) The marketer of the designer denim jeans typically is not profitable for products like these.

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Definitions:

Public's Health

The science and practice of protecting and improving the health of a community, as by preventive medicine, health education, control of communicable diseases, application of sanitary measures, and monitoring of environmental hazards.

Age of Majority

The legally recognized age at which an individual is considered an adult and capable of assuming legal rights and responsibilities.

Unconscionable

An action or a contract deemed to be so unfair or unjust towards a party that no reasonable or informed person would agree to it.

Business Law

A branch of law that deals with the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.