Stocking a Deep and Broad Assortment Is Appealing to Customers,but

question 64

Multiple Choice

Stocking a deep and broad assortment is appealing to customers,but costly for retailers.What option does a small specialty store owner have to offset costs,and make a profit?

• A)charge higher prices
• B)hire less staff
• C)offer less expensive assortments
• D)offer less hours of operation
• E)substitute services for merchandise

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Definitions:

Deflationary

Pertaining to or causing a decrease in the general price level of goods and services, often leading to increased purchasing power of money.

Bilateral Monopoly

A market structure where a single buyer (monopsony) faces a single seller (monopoly), leading to unique negotiation dynamics for prices and terms of exchange.

Inclusive Union

A labor union that aims to represent a wide variety of workers, regardless of occupation or industry, focusing on broad-based membership and rights.

Perfectly Competitive

A market structure where there are many sellers and buyers, products are homogeneous, and there are no barriers to entry or exit.