Mark's Scratch and Dent Sells Slightly Damaged Name Brand Appliances

question 119

Multiple Choice

Mark's Scratch and Dent sells slightly damaged name brand appliances at lower prices to lower income families.He is considering the implementation of a growth opportunity.Which of the following would most likely build on his present competitive advantage?

• A) open a similar store in a nearby community
• B) extend the hours that the store is open
• C) open a used furniture shop for the same target market
• D) open an Internet store
• E) open a thrift store on the same block

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Definitions:

Equity

The concept of fairness in economics, which may refer to ownership interest in a company (as in stockholders' equity) or to a principle of justice and fairness in the distribution of wealth and resources.

Deadweight Loss

A societal expense arising from market inefficiency, happening when there is a mismatch between supply and demand.

Equilibrium

A state in a market where the supply of a good matches its demand, resulting in stable prices.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable amount increases, leading to higher earners paying a higher rate of tax on their income.