The "Long Tail" Effect Refers to ________

question 30

Multiple Choice

The "long tail" effect refers to ________.

• A)using four or more keywords in a search engine to get narrow and specific search results
• B)the ability of consumers to use the Internet to buy items that would otherwise be difficult to obtain
• C)the unknown impact that the Internet will have on commerce and culture over the coming decades
• D)how some small companies are able to succeed by creating products for larger companies

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Definitions:

Sunk Costs

Sunk costs refer to money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Opportunity Costs

A rephrased definition: The potential gains or benefits that are lost when choosing one alternative over another in decision-making.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Income Statement

A financial statement that shows a company’s revenues, expenses, and profits or losses over a specific period.