Scenario 1-5 Exodus Moving Is a Small Business That Was Created to Created

question 32

Multiple Choice

Scenario 1-5
Exodus Moving is a small business that was created to serve local furniture stores' delivery needs in the Boulder Colorado area.They have specialized equipment that allows them to lift and transfer large and bulky pieces of furniture with less risk of damage than most traditional movers.Many of these furniture stores do not sell enough volume to keep their own trucks and drivers busy all of the time, so Exodus fills a real market need.As a result, most such stores are very interested in outsourcing delivery service needs.Exodus has attracted many customers from these stores by guaranteeing 48 hour delivery within a 50 mile radius of any of the stores they serve.Eventually, Exodus hopes to attract the business of other retailers who might require delivery services, such as electronics or appliance stores.
-(Scenario 1-5) Exodus has learned that the more furniture moving volume it has, the lower the cost per item.This has encouraged the president of Exodus to do more advertising so that they can achieve ____ as they get more stores to use their services.

• A)brand loyalty
• B)economies of scale
• C)inelasticity of demand
• D)elasticity of demand

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Definitions:

M2

An expansive categorization of money that encompasses cash, checking deposits, and forms of near money that can be easily converted into cash or used for payments.

M1

M1 encompasses the most liquid forms of money supply, including cash and assets that can quickly be converted to cash.

M2

M2 is a broader classification of money supply that accounts for currency in circulation and various other types of accounts that are less liquid than those in M1.

M1

Refers to the physical money supply that includes coins and notes in circulation as well as non-bank public holdings of checkable deposits.