Chapter 5.1, Problem 1R

To determine

Significance of club warehouse store, convenience store, private-labeled products.

Explanation of Solution

• Club warehouse store : As these stores sell items in large quantities and charge lower prices, there is a trade-off between quantity and prices. People cannot buy small quantities at lower prices. Either they can buy large quantities at low prices or they can buy small quantities al higher prices. These stores required people to become its member in order to shop in them.
• Convenience store :People can access these stores easily but they should shop only when they want to save time as these stores are costly.
• Private -labeled products: Low priced items produced by a company are sold by many other companies using their own brand name. These products have low prices and are sold by supermarket chains and club warehouse chains. It is also known as own store-brand products.

Economics Concept Introduction

Introduction:

• Club warehouse store :These stores sell a limited number of brands and items in large quantities and the items are sold at lower prices.
• Convenience store: These stores have limited collection of relatively higher-priced items. These store remain open for 16 to 24 hours a day.
• Private-labeled products: These products are produced by a company and sold by other companies in their own brand name. .