Jose Is a Salesperson for a Firm That Sells and Leases

question 59

True/False

Jose is a salesperson for a firm that sells and leases heavy construction equipment.This equipment is very expensive,and is highly specialized.Jose spends a great deal of time learning about potential customers' needs,then uses his knowledge of the Internet to locate exact specifications of equipment offered by all the major producers in the industry.Armed with this information,Jose is able to identify the best equipment for each job.Jose has completed the preapproach stage of the selling process.

---

Definitions:

Marginal Revenue

The additional income gained from selling one more unit of a product or service.

Marginal Costs

The increase in total production cost that comes from making or producing one additional unit.

Average Total Costs

The cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Technological Change

The process of innovation and development of new methods, products, or processes, driving efficiency and economic growth.