A Manufacturer Utilizing an Exclusive Form of Distribution Coverage

question 88

Multiple Choice

A manufacturer utilizing an exclusive form of distribution coverage:

• A) manufactures products that are characterized by low unit value and high frequency of purchase.
• B) attempts to gain exposure through as many wholesalers and retailers as possible.
• C) severely limits distribution and intermediaries are provided exclusive rights within a territory.
• D) limits the use of intermediaries to the ones believed to be the best available in the geographic area.

---

Definitions:

Industrial Alcohol

Alcohol used for industrial purposes, including manufacturing and as a fuel or solvent, rather than for consumption.

Interproduct Competition

Interproduct Competition refers to the competition between different products that serve similar purposes, encouraging diversity and improvement in the market.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for competition based on other factors than price.

Economies of Scale

The financial advantages gained by enterprises from their operational size, where the per-unit cost decreases as the operation size increases.