Bramo Courier Services Has Set Up an Extranet Website to Enable

question 71

Multiple Choice

Bramo Courier Services has set up an extranet website to enable its customers to place orders directly. It has also set up an intranet website to enable its employees to convey order and shipping information to the relevant departments within the firm. However, to ensure an effective and smooth exchange of information, Bramo Courier Services has to pay $100 million annually for Internet access. In this scenario, the cost that Bramo Courier Services incurs is an example of _____.

• A) acquisition cost
• B) processing cost
• C) communication cost
• D) retrieval cost

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Income Decreases

A situation where individuals or households experience a reduction in earnings, affecting their purchasing power and economic stability.

Demand

The volume of goods or services that consumers are ready and financially able to buy at several prices over a designated period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, at a specific time.