Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located further away.

Question

Quizplus · Accepted Answer

FOB-origin pricing means that the buyer is responsible for the shipping costs from the point of origin. Therefore, customers located closer to the firm may actually benefit from reduced shipping costs. It is customers located further away who would bear higher shipping costs, making them less likely to benefit from FOB-origin pricing.

Customers Located Close to a Firm Are Less Likely to Benefit