The Wheel of Retailing Refers to the Tendency for the Price

question 23

True/False

The wheel of retailing refers to the tendency for the price of products at the retail end of the distribution channel to fall over time.

---

Definitions:

Private Marginal Cost

Private marginal cost refers to the cost that a company incurs for producing an additional unit of a good or service, excluding any external costs.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service.

Private Cost

The costs that an individual or company incurs directly as a result of its actions, excluding external costs borne by society.

Deadweight Loss

Net loss of total (consumer plus producer) surplus.