If a Producer Has a Technically Superior and Expensive Product-Which

question 76

Multiple Choice

If a producer has a technically superior and expensive product-which has achieved brand preference-and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek:

• A) Multichannel distribution.
• B) Exclusive distribution.
• C) Administered distribution.
• D) Intensive distribution.
• E) Selective distribution.

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output expands, typically due to inefficiencies and increased complexity.

Average Total Costs

The total cost of production divided by the quantity of output produced; a measure of cost per unit of output.

Scale of Operations

The scope, size, or capacity at which a company or organization performs its activities, impacting costs, efficiency, and potential for growth.

Economies of Scale

Reductions in per-unit cost that organizations achieve through expanded production scales, where larger output volumes usually mean decreased costs per unit.