One Way Neighborhood Grocers Can Take Advantage of Volume Discounts

question 52

Multiple Choice

One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to

• A) purchase a franchise membership.
• B) become a subsidiary of a larger supermarket chain such as Kroger.
• C) join a professional merchant association and hire food brokers to negotiate lower prices for produce and dry goods.
• D) create a grocery networking system to exchange coupon vouchers.
• E) participate in a retailer-sponsored cooperative with other independent grocers.

---

Definitions:

Tariff Revenue

Income that a government collects from imposing duties on imported goods.

Consumer Surplus

The divergence between the amount consumers are willing to pay for a product or service and the amount they actually pay.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good compared to what they actually receive, usually measured by the area above the supply curve and below the market price.

Total Surplus

The aggregate net advantage to society, encapsulated by both consumer and producer surplus within a market.