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A Sales Manager Sets the Following Performance Objective for Members

question 50

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A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months.Which one of the following is a valid criticism of this objective?


Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from trade.

Consumer Surplus

The separation between what consumers envisage paying for a good or service and the amount they actually disburse.

Producer Surplus

The gap between the price that sellers are ready to take for a product or service and the actual price they get from the market.

Deadweight Loss

An economic inefficiency that arises when the balance for a product or service is either not attained or cannot be attained.

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