DeBeers Sells Most of the Diamonds It Produces to Industry

question 124

Multiple Choice

DeBeers sells most of the diamonds it produces to industry.The company controls over 90 percent of the market and has great power over its distributors.In its marketing channel,DeBeers would be considered a:

• A) channel authority
• B) channel member
• C) channel leader
• D) channel gatekeeper
• E) power broker

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Definitions:

Profit-Maximizing

The process or strategy employed by a firm to adjust its production and prices to achieve the highest possible profit.

Price Elasticity

A quantitative representation of how quantity demanded or supplied of a product changes in response to a price change, signifying the sensitivity of consumers or producers to price variations.

Marginal Cost

The incremental cost of creating one more unit of a good or service.

Profit-Maximizing

Profit-maximizing refers to the strategy or point where a company achieves the highest possible profit from its operations, after accounting for all costs.