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When establishing a distribution strategy, the first and most obvious consideration is the product.
Wage Rate
The amount of money a worker is paid per unit of time, such as an hour or a month.
Marginal Physical Product
The additional output resulting from one more unit of a specific input, assuming all other inputs remain constant.
Marginal Revenue Product
Marginal revenue product measures the additional revenue generated by employing one more unit of input, commonly used to analyze labor and capital contributions.
Derived Demand
Refers to the demand for a good or service that arises from the demand for another related good or service.
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