A Geographical Sales Structure

question 26

Multiple Choice

A geographical sales structure:

• A)organizes the salesforce according to where salespeople live
• B)organizes the salesforce in teams of salespeople,each representing different regions
• C)organizes sales territories by customer account
• D)organizes sales territories by product sold
• E)organizes sales territories by physical areas of the world

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Definitions:

Total Surplus

The total societal benefits from trading a good or service, encapsulated by the combination of consumer surplus and producer surplus in a market.

Average Total Cost

The total cost divided by the quantity produced, denoting the cost per unit of production.

Natural Monopoly

A market structure where a single supplier is most efficient in producing the goods due to high fixed or startup costs, making it unfeasible for new entrants to compete.

Producer Surplus

The variance between the intended selling price by producers and the real price they end up receiving.