What Is the Most Likely Result of Increased Product Variety

question 30

Multiple Choice

What is the most likely result of increased product variety and assortment in a marketing channel system?

• A) increased distribution costs
• B) reduced storage requirements
• C) higher service output demands
• D) limited bulk breaking opportunities
• E) reduced success rates in customer service

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Definitions:

Variable Inputs

Resources or factors of production whose quantity can be changed in the short term to influence output.

Fixed

Fixed typically refers to costs or assets that do not change in the short term, regardless of the level of output or activity.

Short Run

A period in economic analysis during which at least one input is fixed, limiting the ability of firms to adjust to changes in market conditions.

Marginal Product

The growth in production resulting from one more unit of input, while keeping all other inputs the same.