Drop Shippers

question 324

Multiple Choice

Drop shippers

• A)own the merchandise they sell but do not physically handle,stock,or deliver it.
• B)perform all channel functions,and sell on consignment to retailers.
• C)take title to merchandise but sell only to buyers who call on them,pay cash for merchandise,and furnish their own transportation for merchandise.
• D)have a small warehouse from which they stock their trucks for distribution to retailers.
• E)work for several producers and carry noncompetitive,complementary merchandise in an exclusive territory.

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Definitions:

Marginal Revenue Product

The supplementary earnings derived from utilizing an extra unit of a resource, like labor or capital.

Variable Resource

Inputs or resources used in production that change in amount with the level of output, such as labor or raw materials.

Unskilled Labor

Labor that requires no specialized skills, education, or training.

Skilled Labor

Workers who possess specialized skills, training, or knowledge that are used in the production of goods or the provision of services.