The Two Basic Forms of Points-Of-Parity Are ________ and ________

question 46

Multiple Choice

The two basic forms of points-of-parity are ________ and ________.

• A) conceptual points-of-parity; competitive points-of-parity
• B) strategic points-of-parity; conceptual points-of-parity
• C) category points-of-parity; deliverable points-of-parity
• D) competitive points-of-parity; peculiar points-of-parity
• E) category points-of parity; competitive points-of-parity

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Definitions:

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand.

Economic Profit

The difference between the total revenue received from the sale of an output and the total opportunity costs of the inputs used.

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Economic Loss

A situation where total costs exceed total revenues, resulting in a negative profit for a business or economy.