__________ Reduce Costs and Maintain Low Prices by Buying Opportunistically

question 14

Multiple Choice

__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory,offering limited assortments of household goods and groceries,as well as health and beauty aids.

• A) Category killers
• B) Specialty stores
• C) Factory outlets
• D) Extreme-value retailers
• E) Convenience stores

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Definitions:

Externality

A consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative.

External Costs

External costs, or negative externalities, are costs that are not borne by the parties directly involved in a transaction or activity but are imposed on third parties or society at large, such as pollution.

Internalized

This term generally refers to the absorption of external effects or costs by the decision-maker, often in the context of environmental economics.

Coase Theorem

An economic theory stating that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.