When Evaluating Channel Alternatives,if the Feasible System Lies Between the Ideal

question 44

Multiple Choice

When evaluating channel alternatives,if the feasible system lies between the ideal and existing system,

• A)the existing system can be changed without sacrificing management goals.
• B)relaxing management constraints might produce even greater benefits.
• C)the fault is not with the channel design,it is with poor management.
• D)(a)and (b)only.
• E)(a)and (c)only.

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced, reflecting the average cost of producing each unit excluding fixed costs.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the surplus gained from an activity beyond the next best alternative.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Average Total Cost

The sum of average fixed costs and average variable costs, divided by the total quantity of output, reflecting the per-unit cost of production including all expenses.