Which of the Following Is True of Products Priced as "FOB

question 226

Multiple Choice

Which of the following is true of products priced as "FOB origin"?

• A)The purchase of these products permits the buyers to subtract transportation expenses from their bills.
• B)The transportation costs of these products are uniformly distributed among all channel members including the final purchaser.
• C)The legal title and responsibility of these products lies with the seller until it is delivered to the buyer.
• D)The buyer pays all the freight charges to transport the product from the manufacturer's loading dock.

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Definitions:

Private Goods

Goods that are both excludable and rivalrous, meaning only paying customers can consume them, and one individual's consumption reduces the quantity available for others.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to negative externalities or public goods not being produced in sufficient quantities.

State-Owned Bridge

A bridge that is owned, financed, and operated by the government or state authorities, indicating public ownership and responsibility.

Public Good

A good that is non-excludable and non-rivalrous, meaning its use by one person does not reduce its availability to others, and no one can be effectively excluded from using it.