The Reputation of the Manufacturer and the Retail Store Surroundings

question 203

True/False

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

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Definitions:

Accounting Profit

The difference between the total revenue and explicit costs of a firm, not accounting for implicit costs.

Economic Profit

The variance between a company's overall incomes and its combined explicit and implicit expenses.

Implicit Costs

The opportunity costs of using resources owned by the firm for its operations instead of renting, selling, or utilizing them in other ways.

Implicit Costs

The opportunity costs of using resources that a firm already owns, typically non-out-of-pocket costs.