Which of the Following Would Be Considered as an Unlikely

question 14

Multiple Choice

Which of the following would be considered as an unlikely occurrence?

• A) Manufacturer offers a cash discount to a wholesaler.
• B) Wholesaler offers a cash discount to a retailer.
• C) Retailer offers a cash discount to a customer.
• D) All of these are standard practices.

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Definitions:

Marginal Profit

The additional profit gained from producing or selling one more unit of a good or service.

MR < MC

A condition where marginal revenue is less than marginal cost, suggesting that a firm should reduce its output to maximize profit.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs, reflecting the true profitability of a firm.

Entry Barriers

Refers to obstacles that hinder new firms from entering a market, such as patents, strong brand loyalty among existing customers, or high capital requirements, essentially similar to barriers to entry but rephrased.