Discrepancies of Quantity Occur Because

question 187

Multiple Choice

Discrepancies of quantity occur because

• A)producers seek economies of scale.
• B)most intermediaries specialize in selected product lines and buy in large enough quantities to get a good price.
• C)adding intermediaries in a channel of distribution increases the cost of getting products to consumers.
• D)consumers want the convenience of buying many different types of products at one time.
• E)All these answers are correct.

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Definitions:

Transitivity

In decision theory, the principle that if preference A is greater than B, and B is greater than C, then A is greater than C.

Arrow's Impossibility Theorem

A theorem that demonstrates the impossibility of devising a social welfare function that satisfies all of a specified set of reasonable conditions simultaneously.

Majority Rule

A decision-making rule in which policies or choices are decided based on the preference of the majority of participants.

Transitive Preferences

A condition in decision-making where if an individual prefers option A over B, and B over C, then the individual also prefers A over C.