The _______________ Model Supplants, Rather Than Replaces, Existing Physical Business

question 42

Multiple Choice

The _______________ model supplants, rather than replaces, existing physical business offices and call centers by using the Internet as a sales and service channel.

• A) self-service innovator
• B) supply chain innovator
• C) channel mastery
• D) market creator

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Definitions:

AVC Curve

A graph representing the average variable cost of producing different quantities of output, typically U-shaped due to economies and diseconomies of scale.

Short-run Shut-down Price

The price level at which a firm's total revenue is equal to its variable costs, below which it should cease operations.

Short-run Supply Curve

Represents the relationship between the price of a good and the quantity supplied over a short period, during which at least one input is fixed.

Marginal Cost Curve

A graphical representation of the change in total cost that arises when the quantity produced changes by one unit.