Economic Profit Is the Difference Between Revenue and the Opportunity

question 34

True/False

Economic profit is the difference between revenue and the opportunity cost of all resources used to produce the items sold.

---

Definitions:

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and ultimately to the consumer.

Slotting Allowances

Fees paid by manufacturers or vendors to retailers in order to have their products placed in more favorable shelf locations or to gain inclusion in a store assortment.

Category Management

A retail and purchasing concept where the range of products purchased by a business or sold by a retailer is managed as a strategic business unit.

Merchandising Technique

Strategies and practices employed by companies to promote the sale of goods, often through effective display and presentation in retail environments.