The Major Difference Between an Off-Price Retailer and a Discount

question 69

Multiple Choice

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________.

• A)who are trying to offload returned or slightly irregular inventory;selling new but inexpensive merchandise
• B)at below wholesale prices;and charge a high initial price with the full intent of taking markdowns later
• C)at below wholesale prices;at full price but take a less of a markup
• D)at various price points;at the lowest price points possible
• E)who are part of a retailing cooperative;who are part of a wholesaling cooperative

---

Definitions:

Purely Competitive Seller

A seller in a market where there are many sellers and buyers, each selling a homogeneous product, and no one can influence the market price.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, used to make employment decisions.

Purely Competitive

A market structure characterized by an infinite number of buyers and sellers, products that are identical, and no control over the market price by individual firms.

Marginal Product

Represents the additional output that can be produced by adding one more unit of a specific input, keeping other inputs constant.