The Primary Source of Revenue for a Wholesaler Is

question 92

Multiple Choice

The primary source of revenue for a wholesaler is

• A)investment income.
• B)service revenue.
• C)the sale of merchandise.
• D)the sale of plant assets the company owns.

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Definitions:

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a product or service.

Asymmetric Information

One of the parties to a transaction has information relevant to the transaction that the other party does not have.

Adverse Selection

A situation in which asymmetric information results in high-quality goods or high-quality consumers being squeezed out of transactions because they cannot demonstrate the quality of the product they are offering for sale.

Fair Bet

A wager in which the expected value to both parties involved is equal; no side has an advantage.