Which of the Following Is Part of the External Environment

question 67

Multiple Choice

Which of the following is part of the external environment for a distributor of aquariums and everything needed to set up aquariums including tropical fish and plants?

• A) Employees who care for fish before they are sold to retailers
• B) Competitors who carry the same aquarium equipment
• C) The financial resources needed to create the proper environment for breeding the fish
• D) The participative organizational culture the distributor has
• E) The distributor's privately-owned warehouse for storing the aquarium equipment

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Definitions:

Average Revenue

The average amount of money received per unit of product or service sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a product or service.

Marginal Cost

The extra financial burden of manufacturing an additional unit of a product or service.

Price Takers

Firms or individuals who accept the market price as given and have no power to influence that price due to the competitive nature of the market.