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A Soft Drink Manufacturer That Contracts with Local Bottlers to Produce

question 163

True/False

A soft drink manufacturer that contracts with local bottlers to produce and distribute products within a certain market area is practising selective distribution.


Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.

Efficient Allocation

The optimal distribution of resources among competing uses to maximize output or welfare.

Ppf (Production Possibility Frontier)

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, when resources are fully and efficiently utilized.

Efficiently

Achieving maximum productivity with minimum wasted effort or expense.

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