If a Distributor's Margins Are Based on the "Landed" Price

question 66

Multiple Choice

If a distributor's margins are based on the "landed" price of an import shipment,they will be based on:

• A)ex-works price.
• B)transportation costs.
• C)insurance costs.
• D)VAT.
• E)all of the above

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Target Market

The target market is a specific group of consumers at which a company aims its products and services, identified by demographic, geographic, or psychographic characteristics.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Inelastic Demand

This economic concept describes a situation where the demand for a product does not significantly change with the price change.