James McGee Is a Sales Representative for Canon Business Solutions

question 162

Multiple Choice

James McGee is a sales representative for Canon Business Solutions and his territory includes St. Louis and the surrounding suburbs. James has a variety of printers, copiers, and document solutions that he provides to companies ranging from educational institutions, government offices, and small to medium-sized businesses. One of his accounts in the St. Louis area is Cintas, which offers a wide range of products to businesses. James was working with the St. Louis division manager, Stephanie Miller, to gain her approval to purchase a networked printer and copier for their 50-person office. The cost of the printer/copier including installation would be $5,490, but Stephanie told James that they could only spend $5,000, and in order to get the order, James would have to provide a 10% discount. James started thinking about how to add value to the proposal and asked Stephanie if Cintas would consider some type of a trade. After a friendly discussion as to how Cintas could provide an exchange of product to Canon Business Solutions, they agreed to a deal of $5,000 plus Cintas would deliver and maintain welcome mats or rugs in Canon's St. Louis office and provide disinfectants and a scent machine for the bathrooms. James and Stephanie successfully utilized _____ to facilitate the exchange.

• A) bartering
• B) money
• C) credit
• D) negotiation
• E) trade

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Definitions:

Perfectly Competitive Market

A market structure characterized by an infinite number of buyers and sellers, identical products, no barriers to entry or exit, and perfect information among all participants.

Short-run Industry

A period in which at least one factor of production is fixed, and firms can only partially adjust their production levels.

Game-day T-shirts

Merchandise specifically designed and sold for sporting events, often featuring team logos or slogans to support the team.

Perfectly Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, homogenous products, and perfect information.