Because Many Consumers Choose Stores Based on Proximity to Their

question 9

Multiple Choice

Because many consumers choose stores based on proximity to their workplaces or homes, great locations are

• A)difficult to define.
• B)more important than great products.
• C)always situated near supply chain members.
• D)a competitive advantage that few rivals can duplicate.
• E)almost always locations next to big-box discounters.

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Definitions:

Economic Profit

The difference between total revenue and total economic costs (including both explicit and implicit costs), reflecting the true economic performance of a company.

Purely Competitive

An economic model where numerous small businesses operate, offering identical products, with unrestricted market entry and exit, and complete transparency of information.

Short Run

A period in which at least one input in the production process is fixed and cannot be varied to influence output.

Economic Profit

The difference between a firm's total revenue and all costs, including both explicit and implicit costs.