Explain Why the Multiplier That Is Calculated in the Textbook

question 47

Essay

Explain why the multiplier that is calculated in the textbook and the size of the multiplier in the real world are likely to be different. What are the two reasons?

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Definitions:

Off-price Retailer

is a type of retailer that offers high-quality goods at lower prices than those of conventional retailers by buying overstocked or out-of-season items from manufacturers.

Full-line Discount

Retailers that offer a wide range of products from various categories at discounted prices, aiming to be a one-stop shop for consumers.

General Merchandise

Refers to a broad category of products that are sold by retailers, including household goods, apparel, and automotive products, among others.

Specialty Stores

Retail outlets focusing on specific product categories, offering a deep assortment within those categories, accompanied by expert knowledge and high service levels.