After a Natural Disaster Destroyed Nine of the 10 Hospitals

question 170

Multiple Choice

After a natural disaster destroyed nine of the 10 hospitals in a city but injured only 1 percent of the population,what would you expect to happen to the price and quantity of medical services?

• A) There would be no expected changes to equilibrium price or quantity.
• B) Equilibrium price and quantity would rise because supply would slightly decrease and demand would dramatically increase.
• C) Equilibrium price and quantity would fall because supply would slightly decrease and demand would dramatically increase.
• D) Equilibrium price would rise because supply would significantly decrease and demand would increase only slightly.The effect on equilibrium quantity is ambiguous.
• E) Equilibrium price would fall and quantity would rise because demand would decrease and supply would remain constant.

Comprehend the principles behind effective sales call allocation and routing.

Identify the strategic importance of key accounts in sales force resource allocation.

Apply basic sales-related financial calculations to assess sales performance.

Understand the role and importance of emotional intelligence in sales performance.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate insights into the true costs of production.

Activity Rates

In activity-based costing, the cost allocation rate for each activity cost pool, allowing for more accurate product or service costing.

Customer Margin

The profit margin that is generated from a specific customer, calculated by subtracting the costs associated with serving that customer from the revenue earned from them.

Idle Capacity

Unused or underused production capacity within a business, often leading to inefficiency and increased costs.