Consumers Receive the Benefits of Place Utility When

question 214

Multiple Choice

Consumers receive the benefits of place utility when

• A) they have to travel excessively to obtain products they want.
• B) retailers remain open 24 hours a day.
• C) they can stock up on products they need but not use them right away.
• D) they make purchases with credit and debit cards.
• E) products are available in locations where consumers want to buy them.

Comprehend the mechanism and effects of floating exchange rates.

Grasp the historical basis and impact of the gold standard on international financial systems.

Absorb the objectives and outcomes of the Bretton Woods agreement.

Understand the concept of production possibilities frontiers and how they illustrate the choices and trade-offs facing an economy.

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Definitions:

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed overhead as a period expense.

Activity Base

A measure used to assign costs in activity-based costing, reflecting the volume of activity that drives costs.

Service Firm

A business that provides intangible products or services to consumers or other businesses.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, contributing to covering fixed costs and generating profit.