A Virtual Corporation

question 137

Multiple Choice

A virtual corporation:

• A) has strong capital, but it can only survive if it develops a close relationship (i.e., a partnership) with another firm that has developed a good marketing plan.
• B) looks for capable suppliers who can meet the specs it lays out.
• C) handles all of its sales using the Internet.
• D) All of these.
• E) None of these.

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Definitions:

Consumer Surplus

The deviation between consumers’ anticipated payment for a product or service and the eventual price paid.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at each price level.

Consumer Surplus

The discrepancy in the total amount anticipated to be paid by consumers and the amount that is actually paid for a product or service.

Shipping Increases

A rise in the cost or amount required to transport goods from one location to another, potentially affecting trade and sales prices.