Which of the Following Statements About Physical Distribution Is False

question 123

Multiple Choice

Which of the following statements about physical distribution is False?

• A) Marketers should always try to maximize the customer service level provided regardless of cost.
• B) Physical distribution activities are invisible to most consumers-unless something goes wrong.
• C) There are trade-offs between costs, the customer service level desired, and sales.
• D) Information technology can help marketers improve service and cut costs.
• E) In countries with inefficient distribution systems, consumers can face shortages of products they need.

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Definitions:

Initial Endowment

The initial quantity of goods, services, or resources an individual, firm, or economy possesses.

Pareto Efficient

A state of allocation where it is impossible to make any one individual better off without making at least one individual worse off.

Utility Function

A mathematical representation that ranks the preferences of an individual consumer for different bundles of goods.

Initial Endowment

The original allocation of resources, including assets and goods, available to an individual or entity at the start of an economic analysis.