Corporate Chains

question 23

Multiple Choice

Corporate chains:

• A) can get a cost advantage over independent stores by spreading management costs to many stores.
• B) account for nearly 10 percent of retail sales.
• C) usually cannot obtain economies of scale in distribution.
• D) are declining in importance.
• E) All of the above are true.

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Definitions:

Marginal Social Cost

The complete expense incurred by society when one more unit of a product or service is created, encompassing both personal expenses and any external factors.

Marginal Benefit

The enhancement in satisfaction or benefit achieved by using or producing another unit of a product or service.

External Costs

Costs of an economic activity that are not borne by the participants in the activity but are imposed on others, such as pollution.

Competitive Free Market

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, with prices determined by supply and demand forces.