The Possibility of a Parallel Market Occurs Whenever Price Differences

question 92

True/False

The possibility of a parallel market occurs whenever price differences are less than the cost of transportation between two markets.

---

Definitions:

Cost of Merchandise Sold

The direct costs attributable to goods sold by a company, including the purchase price of merchandise, freight, and handling charges, less any discounts received.

Retail Business

A business entity that sells goods or services directly to consumers.

Service Business

A business that provides intangible products or services to customers.

Gross Profit

The difference between sales and the cost of goods sold, representing the profit from buying and selling goods before other expenses are taken out.