Which Business Type Describes Amazon.ca

question 128

Multiple Choice

Which business type describes Amazon.ca?

• A) Brick-and-mortar business
• B) Pure-play business
• C) Click-and-mortar business
• D) All of the above depending on the product being purchased and the company purchasing the product

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Definitions:

Diseconomies of Scale

The scenario where a company or firm experiences an increase in marginal costs when output is increased.

Long-Run Average Cost

The average cost per unit of output when all inputs, including physical capital, are variable in the long term.

Upward-Sloping

A graph line that increases in height as it moves from left to right, characteristic of certain supply curves.

Economies of Scale

Cost advantages achieved by increasing production levels, resulting in lower per-unit costs due to spreading fixed costs over more units.