Clayton Tennis Equipment,a manufacturer,cannot perform distribution tasks efficiently so it uses Jackson Sports Equipment as a wholesaler to distribute its products in the Midwest.Clayton likely is inefficient in performing distribution tasks because:
A) Jackson is better positioned to select and use facilitating agencies.
B) Clayton's fixed costs are too high.
C) Jackson can spread its fixed costs across products from multiple manufacturers.
D) Clayton's marginal revenue exceeds its marginal costs.
E) Clayton has low average production costs.
Correct Answer:
Verified
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A)
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