Organizational Markets Differ from Consumer Markets in That Organizational Markets

question 36

Multiple Choice

Organizational markets differ from consumer markets in that organizational markets ________.

• A) have a high number of purchases that are low risk and low cost
• B) have derived demand
• C) are not geographically concentrated
• D) have a single individual in the role of decision maker
• E) involve shorter decision processes

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase at various prices.

Total Costs

The overall expenditure associated with producing goods or services, embracing both fixed and variable costs.

Flight Capacity

The maximum number of passengers or quantity of cargo that an aircraft can carry.

Price Elasticity

The degree to which the demand for a product is sensitive to price changes, indicating how the quantity demanded fluctuates with price variation.