The Question Regarding the Various Channel Functions Is Not Whether

question 68

Multiple Choice

The question regarding the various channel functions is not whether or not they need to be performed but who is to perform them. All channel functions have three things in common. Which of the following channel functions can result in lowered producer costs and prices?

• A) They use up scare resources.
• B) They can often be performed better through specialization.
• C) They provide for storage and transportation.
• D) They can be shifted among channel members.
• E) They aid in channel integration.

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Definitions:

Price Discrimination

The practice of selling the same product or service at different prices to different customers, not based on cost differences.

Interstate Commerce

The exchange of goods, services, or money between parties in different states, governed by federal law in the United States.

Create A Monopoly

The practice or situation where a single company or entity exclusively controls a particular market, limiting competition and possibly leading to higher prices and less innovation.

Sherman Act

A foundational United States antitrust law aimed at maintaining fair competition in the marketplace by prohibiting monopolies, cartels, and anticompetitive practices.