The Optimal Level of Any Activity Is That Level for Which

question 69

Multiple Choice

The optimal level of any activity is that level for which

• A)total benefit exceeds total cost by the greatest amount.
• B)marginal benefit exceeds marginal cost by the greatest possible amount.
• C)both a and b
• D)none of the above

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Definitions:

Customer Lifetime Value

A prediction of the net profit attributed to the entire future relationship with a customer.

Relationship

The connection or association between individuals, groups, or entities, which can be professional, personal, or commercial in nature.

Relationship Selling

A sales approach focusing on building long-term relationships with customers, rather than on individual transactions, to foster loyalty and repeat business.

Multi-level Marketing

A strategy some direct sales companies use to encourage existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales.