A Key Assumption That Underlines the Strategies of Most Banks,hotels,international

question 33

Multiple Choice

A key assumption that underlines the strategies of most banks,hotels,international airlines and Las Vegas casinos is:

• A)The customer is always right
• B)Cost efficiency is the main determinant of profitability
• C)A small minority of affluent or high spending customers contribute a large proportion of total profit
• D)Sustainable competitive advantage requires innovative product differentiation

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Definitions:

Marginal Cost

The rise in overall expenses associated with the production of an extra unit of a product.

Earthquake Detectors

Devices or systems designed to detect and provide early warnings of seismic activity, potentially saving lives and reducing damage.

Production Function

An equation that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs.

Total Cost

The complete cost of production, combining both fixed and variable costs.