Which of the Following Is True of the Direct Sales

question 28

Multiple Choice

Which of the following is true of the direct sales method of retailing?

• A)It is ineffective in providing detailed information about a product.
• B)It is not suited for marketing products like home appliances and kitchenware.
• C)It is quite expensive,and consumers do not want to pay the higher prices needed to cover the high costs of this method of retailing.
• D)It is the fastest-growing type of retailing and is an alternative to the setting up of virtual stores that incur more costs.

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Definitions:

Competitive Labor Market

A competitive labor market is characterized by numerous employers and workers where no single entity has the power to influence wages, ensuring efficient allocation of labor.

Monopsonist

A market situation where there is only one buyer for many sellers, giving the single buyer significant control over prices and terms of purchase.

Competitive Labor Market

A market scenario where numerous buyers (employers) and sellers (workers) freely interact to determine the wages and employment conditions without significant restrictions or monopoly power.

Profit-Maximizing Level

The production output level at which a business achieves the highest possible profit, where marginal cost equals marginal revenue.