When Buyers and Sellers Are Separated by Vast Distances,geographical Adjustments

question 271

Multiple Choice

When buyers and sellers are separated by vast distances,geographical adjustments may be made to reflect the cost of transportation of the products from sellers to buyers.Which method of quoting prices would be chosen by a seller who wants to maximize profits?

• A)uniform delivered pricing
• B)single-zone pricing
• C)multiple-zone pricing
• D)FOB origin pricing

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Definitions:

Expected Profit

The forecasted amount of profit, calculated as the sum of all possible profits each multiplied by their probabilities of occurrence.

Probability Of

The likelihood or chance of a specific event occurring within a set of possible outcomes.

Major Loss

A significant financial setback or damage, often used in the context of insurance, investments, or business operations.

Random Variable X

A specific random variable denoted by "X", representing a numerical outcome of a random process.