A Company May Avoid Establishing Sales Territories If

question 30

Multiple Choice

A company may avoid establishing sales territories if:

• A) it uses a matrix organizational structure.
• B) personal friendships attract customers.
• C) the company uses qualitative evaluations.
• D) the company has no key accounts.
• E) sales expenses are rising.

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Definitions:

Industry Output

The total quantity of goods or services produced by all firms within a particular industry.

Zero Marginal Cost

The scenario in which producing one more unit of a good or service does not increase the total cost of production, typically seen in digital goods or highly automated processes.

Marginal Cost

The extra expense linked to generating one more unit of a product or service.

Inverse Demand

A representation of demand that shows how the price of a good or service can vary inversely with changes in the quantity demanded.