A Local Discount Store Offers Customers Three Options for Printing

question 48

Multiple Choice

A local discount store offers customers three options for printing their photos: a self-printing kiosk,one-hour photos,and next-day prints.The most likely reason this type of firm bothers to offer so many different options to its bargain-hunting consumers is because

• A) offering alternatives to customers leads to greater consumer satisfaction.
• B) some photos take longer to print than others,which allows firms to lower costs.
• C) the variance in impatience on the part of the consumer allows the firm to maximize profit.
• D) the different alternatives help consumers realize which service offers the best price.
• E) the competing stores also offer these same options,so it allows the discount store to remain competitive.

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Definitions:

Undertaking

A commitment or assurance given by one party to another, often formalized in a legal context.

Principal-Agent

A relationship in which one entity (the agent) is authorized to perform actions or make decisions on behalf of another entity (the principal).

Employer-Independent Contractor

A non-employment relationship where an individual provides services to a business without being an employee.

Agency Laws

Regulations that govern the relationship between an agent, who acts on behalf of another, and the principal, for whom the agent acts.