Final answer:
The cost difference between an internet business and a brick-and-mortar business includes building and maintaining a physical store, taxes, inventory, and personnel. Internet businesses avoid many of these costs by operating online and holding inventory in low-rent warehouses.
Step-by-step explanation:
The cost difference between an internet business and a brick-and-mortar business includes the cost of the building and maintaining a physical store, taxes, inventory, and personnel.
These costs are incurred by brick-and-mortar businesses that have a physical presence and operate from retail locations.
On the other hand, internet businesses avoid many of these costs as they don't require a physical store and can operate online, which reduces expenses related to building maintenance, rent, and taxes.
Internet businesses also have the advantage of holding inventory in low-rent warehouses instead of maintaining physical stores.
Additionally, they may require fewer personnel as they can automate certain processes through technology. Therefore, the cost difference between the two types of businesses can be attributed to all of the above factors.