When the Marketers for Quiznos Try to Convince You to Buy

question 119

Multiple Choice

When the marketers for Quiznos try to convince you to buy their sandwiches instead of Subway sandwiches, they are ________.

• A)responding to a need
• B)creating a need
• C)differentiating between needs and desires
• D)satisfying a need

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Definitions:

Profit-maximizing Output

The level of production at which a company achieves the highest possible profit, determined by the point where marginal revenue equals marginal cost.

Production Function

A mathematical representation of the relationship between inputs (like labor and capital) and the maximum output that can be produced with those inputs.

Profit-maximizing Quantity

The level of output at which a firm achieves the greatest profit, determined when marginal revenue equals marginal costs.

Profit-maximizing Quantity

The quantity of a product that results in the highest possible profit for the producer, determined by the point where marginal cost equals marginal revenue.