The _______________ Model Uses the Internet to Reduce Search Costs

question 30

Multiple Choice

The _______________ model uses the Internet to reduce search costs and offers the customer a unified process for collecting information necessary to make a large purchase.

• A) infomediary
• B) supply chain innovator
• C) channel mastery
• D) market creator

---

Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold by a business.

Degree of Operating Leverage

A measure that quantifies how much sales revenue can affect operating income due to the presence of fixed costs in a company's cost structure.

Pretax Profit

The profit earned by a company before any tax is deducted, showing the company's earnings directly from its operations.

Break-Even Point

The financial state where total costs equal total revenues, resulting in no net loss or gain for the business.