Paul Kelly Is the Store Manager at the Fresh Produce

question 28

Multiple Choice

Paul Kelly is the store manager at the Fresh Produce Grocery Store, in Cincinnati. He has a close friendship with Matthew, who works as a cashier at the store, with whom he shares an interest in comic books and graphic novels. This is an example of which of the following structures?

• A) Horizontal linkages
• B) Lateral linkages
• C) Informal linkages
• D) Vertical divisions
• E) Lateral divisions

---

Definitions:

Consumer Surplus

The difference as marked by what consumers are prepared to spend on a good or service versus the actual payment made.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit.

Consumer Surplus

The difference in the total amount expected to be paid by consumers for a good or service and the actual payment made.