KarmatchCom Is an E-Commerce Company That Finds Buyers for Cars

question 83

Multiple Choice

Karmatch.com is an e-commerce company that finds buyers for cars owned by others,at a stated price.The company also oversees the negotiation and delivery of the cars,all for a commission from both the buyers and the sellers.Karmatch is a(n) ________.

• A)auction house
• B)clearinghouse
• C)merchant e-commerce company
• D)B2B e-commerce company

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Definitions:

Economic Profits

The surplus remaining after total costs are deducted from total revenue, factoring in both explicit and opportunity costs.

Normal Rate

Refers to the standard, expected rate in financial or economic contexts, often used as a benchmark.

Short Run

The period of time for which two conditions hold: The firm is operating under a fixed scale (fixed factor) of production, and firms can neither enter nor exit an industry.

Total Variable Costs

The sum of all costs that vary with the level of output or production.