Final answer:
Geography significantly affects the limitations of physical retailers, influencing their ability to attract customers and manage inventory as opposed to online retailers like Amazon, which faces different logistical challenges. The correct option is C.
Step-by-step explanation:
The correct answer to the question about physical retailers is that geography plays a significant role in their limitations. Physical retailers are indeed limited by both shelf space and geography, meaning their ability to serve customers is affected by how many products they can display and the density of potential customers around their location.
For instance, a gas station at a busy intersection would likely sell more gas than one located in a less trafficked area. Similarly, a supplier to an automobile manufacturer might benefit from being situated close to the car factory.
These examples demonstrate how strategic location and understanding of geography can influence the success of physical retailers, contrasting with online retailers like Amazon, which stores inventory in large warehouses located in low-rent areas, thus mitigating these limitations to a degree.