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Both Mikell Sevier and Jayson Hammerschmidt Are Considered Comic Book

Question 167

Multiple Choice

Both Mikell Sevier and Jayson Hammerschmidt are considered comic book experts. They both have an extensive private collection of comics. Both are recognized as experts in their field, and both dream of owning their own business. Sevier wants to open a small retail store in which he buys, sells, and trades comics to other collectors. Hammerschmidt wants to open a similar retail operation on the Internet. Both will offer extensive customer service, and customer satisfaction will be their ultimate goals.
-Hammerschmidt will likely experience _____ as a result of his nonstore retailing activities.


A) high profits due to low storage costs
B) high profit margins due to his ability to engage in electronic transactions
C) low profits due to a need for aggressive advertising
D) low contribution margins due to low distribution costs
E) high profit margins due to the ease with which he can implement a secure e-commerce site

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