RHKurt & Son,Inc

question 81

Multiple Choice

R.H.Kurt & Son,Inc. ,distributes rifles for both hunting and target shooting,rifle barrels,triggers,cleaning equipment,and reloading equipment to sporting equipment retailers and many large discount stores.It carries products from 41 different manufacturers.The manufacturers whose products it carries are known for producing superior products and are leaders in their industries.In addition,Kurt is able to repair damaged rifles through its gunsmith service,which is available to all of its retailers.
-Refer to R.H.Kurt.If Kurt wished to make sure its gunsmith service was profitable,it must consider:

• A) how it can minimize the time a customer must wait for his or her rifle to be repaired
• B) how the opening of hunting season will affect demand for its services
• C) how to maintain an adequate staff
• D) whether to ship the repaired rifle to the customer or the retailer
• E) all of these options

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Definitions:

Barriers To Entry

Economic, procedural, or regulatory obstacles that prevent or deter new competitors from easily entering an industry or area of business.

Absolute Market Power

The ability of a single economic actor, or a group of actors, to control market prices, output, and/or the market entry of new competitors without external interference.

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new firms to enter a market, including high startup costs, regulatory hurdles, and established competition.

Monopoly

A market structure characterized by a single seller selling a unique product with no close substitutes, leading to significant control over the market price.