All of the Following Were Parts of the Vision During

question 47

Multiple Choice

All of the following were parts of the vision during the early days of e-commerce except the belief that:

• A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business.
• B) online consumers were rational and cost-driven.
• C) entry costs to the online retail market would be much less than those needed to establish a physical storefront.
• D) the cost of acquiring customers would be much lower.

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Definitions:

Marginal Revenue

The additional income earned by selling one more unit of a product or service.

Profit-Maximizing Level

The point at which a firm produces at a level where the difference between total revenue and total cost is the greatest.

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Normal Good

A product or service whose demand increases as consumers' income increases, typically reflecting higher purchasing power.