Identify the Incorrect Statement About Warehouse Clubs

question 13

Multiple Choice

Identify the incorrect statement about warehouse clubs.

• A) They charge patrons an annual membership fee.
• B) They sell a limited selection of brand-name grocery items, appliances, and clothing.
• C) These mature-stage retailers operate out of enormous, low-cost facilities.
• D) They sell a vast, unlimited selection of miscellaneous items at a deep discount.
• E) Warehouse stores, which have low costs because they buy products at huge quantity discounts and use limited labor, usually have low gross margins.

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Definitions:

Marginal Productivity

The additional output that is produced by using one more unit of a particular input while keeping other inputs constant.

Marginal Cost

The additional expense incurred from producing and selling one more unit of a good or service.

Profits

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Output

The total amount of goods or services produced by a company, industry, or economic system.