When Planning Channels of Distribution,a Marketing Manager Should Know That

question 228

Multiple Choice

When planning channels of distribution,a marketing manager should know that

• A) vertically integrated systems are seldom used-because of the difficulty of maintaining control.
• B) a contractual system offers both flexibility and stability for its members.
• C) the disadvantage of a corporate channel system is reduced control over distribution activities.
• D) the disadvantage of an administered system is that it is a very formal arrangement.
• E) none of these alternatives is correct.

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Definitions:

Profit-Maximizing Quantity

The level of production at which a firm can achieve the highest possible profit, determined by the intersection of marginal cost and marginal revenue.

Power Cords

Electrical cables used to connect an appliance or device to the main electricity supply.

Market Wage Rate

The average or standard amount of compensation paid to workers in a specific market or industry for their labor.

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that employers can legally pay their workers.