Retailers Who Have Stores at Convenient Locations Are Trying to Add

question 273

Multiple Choice

Retailers who have stores at convenient locations are trying to add value by

• A) using a horizontal distribution strategy.
• B) using a broad resource allocation strategy.
• C) providing place utility.
• D) achieving market concentration.

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Definitions:

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, showing the cost of each product unit excluding variable costs.

Average Variable Cost

The cost a company incurs for each unit of output, which changes with the level of production, excluding fixed costs.

ATC

Abbreviation for “Average Total Cost,” reflecting the total cost of production divided by the number of goods produced, in economic terms.

MC

Stands for Marginal Cost, which is the increase or decrease in the total cost that arises from producing one additional unit of a product.