Instacart Is a Service Similar to Uber in That It

question 17

Multiple Choice

Instacart is a service similar to Uber in that it uses an app and promotes the sharing economy concept. Consumers can use the app to contact independent contractors, who will travel to grocery stores and pick up groceries. They will then travel to the consumers' homes to deliver the groceries. Groceries are often marked up to account for the delivery, and customers often pay the drivers tips. However, they receive the benefit of not having to worry about grocery shopping. This service capitalizes on which variable of the e-marketing mix?

• A)Product
• B)Digital media
• C)Promotion
• D)Distribution
• E)Pricing

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Definitions:

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to enter or exit the market, ultimately resulting in no economic profit for the firms in a perfectly competitive market.

Zero Economic Profit

A situation where a firm's total revenue is exactly equal to its total costs, including opportunity costs.

Constant Cost

A situation where the cost of producing one additional unit of a good or service is the same, regardless of the volume produced.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.