The Primary Reason for the Success of PetSmart May Be

question 177

Multiple Choice

The primary reason for the success of PetSmart may be that the company has:

• A) invested in pet hotels, which is a rapid growing market
• B) expanded their retail operations
• C) modified the products and services they sell to match the changing trends
• D) multiple brands of products for pet owners

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Definitions:

Fixed Costs

Expenses that remain constant regardless of the amount of production or output, like lease payments or wages.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which are incurred regardless of the amount of goods or services produced.

Economic Profit

Profit that accounts for both explicit costs and opportunity costs.

Economic Profit

The financial gain made in a transaction after subtracting both the explicit and implicit costs.