Generally When Calculating Profits as Total Revenue Minus Total Costs

question 22

Multiple Choice

Generally when calculating profits as total revenue minus total costs, accounting profits are larger than economic profits because economists take into account

• A)only explicit costs.
• B)only implicit costs.
• C)both explicit and implicit costs.
• D)both types of profits are always equal because they account for the same costs.

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Definitions:

Other Channel Members

Refers to the different participants in a distribution channel, including wholesalers, retailers, and distributors, excluding the manufacturer and the end customer.

Horizontal Conflict

A dispute or disagreement that occurs between businesses operating at the same level in the distribution channel, such as two competing retailers.

Dual Distribution

A marketing strategy where a company uses two or more channels to reach its target market, often simultaneously selling through direct and indirect channels.

Distribution Coverage

Distribution coverage refers to the measure of how much of the target market has access to a company's products or services through its distribution channels.