Which of the Following Statements Is True of the Japanese

question 6

Multiple Choice

Which of the following statements is true of the Japanese market?

• A) The costs of Japanese consumer goods are among the lowest in the world.
• B) Manufacturers are independent of wholesalers for a multitude of services to other members of the distribution network.
• C) The Japanese distribution structure supports long-term dealer-supplier relationships.
• D) Japanese law favors the establishment of large retail stores.
• E) Japanese consumers favor price over personal service.

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Definitions:

Cost Behavior

The way in which costs change in relation to changes in a firm’s level of activity or volume of production.

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss for the business.

Variable Costs

Costs that vary directly with the level of production or service activity, such as materials and labor.

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.