A Channel That Includes Both a Manufacturer's Agent and an Industrial

question 99

Multiple Choice

A channel that includes both a manufacturer's agent and an industrial distributor is appropriate when:

• A) the firm wants specialized personnel to follow up the work of the sales force and expand the business.
• B) the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force.
• C) only one or two channels of distribution are available for the products.
• D) the sales force is large and the marketer is thinking of cutting it down to reduce the costs of production.
• E) customers are highly concentrated in one geographic area.

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Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a certain input while holding other inputs constant.

Picture Framer

A professional or business specialized in enclosing pictures, photographs, or artwork in frames.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease, assuming all other variables are constant.

Short Run

A time period in economics during which at least one input is fixed while others are variable.