TechSource Inc

question 42

Multiple Choice

TechSource Inc.is a wholesaler of electronic components,including connectors and semiconductors.The firm purchases electronic components directly from technology manufacturers,has physical possession of the products,takes legal title to the goods,and then resells it to organizational customers for internal operations or the production of other goods.TechSource Inc.does not sell products to retailers for resale.TechSource Inc.can be classified as a(n) ________.

• A) drop shipper
• B) manufacturers' representative
• C) agent
• D) distributor
• E) broker

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Definitions:

Marginal Benefit

The increased benefit derived from the utilization of one more unit of a good or service.

Marginal Cost

The cost added by producing one additional unit of a product, focusing on changes in overall cost with slight increases in production.

Sunk Costs

Costs that have already been incurred and cannot be recovered.

Marginal Analysis

The examination of the benefits and costs of an additional unit of consumption or production to make decisions on allocations of resources.