The Sorting Process Enables Manufacturers to _____

question 88

Multiple Choice

The sorting process enables manufacturers to _____.

• A)increase their power in the channel of distribution
• B)specialize in one item or product line
• C)fulfill government grading requirements
• D)limit product distribution to the most profitable geographic areas

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Definitions:

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.

Subsistence

The minimum level of essentials (such as food and shelter) necessary for an individual to survive.

Catch-Up Effect

The theory suggesting that less developed countries can grow at a faster rate than developed countries because they can adopt existing technologies and best practices.

Diminishing Returns

A principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.