Which of the Following Statements About the Economic Criteria Used

question 20

Multiple Choice

Which of the following statements about the economic criteria used to decide between using an independent agent or an internal sales force is true?

• A) The fixed costs of using independent agents are lower than those of using a company sales force
• B) The variable costs of using independent agents do not change over time
• C) The variable costs of using independent agents are equal to the variable costs expended on an internal sales force
• D) In terms of cost efficiency, an internal sales force is always more expensive than independent agents
• E) The costs of using independent agents tend to level off as sales volumes increase

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Definitions:

Property Right

A legal right or interest in a property that allows the holder to use, modify, or transfer the property within the bounds of the law.

Federal Government

refers to the national government of a country, which is responsible for governing the country as a whole, as opposed to state, provincial, or local governments.

Clean Water Act

In environmental law, a federal statute that sets requirements for limiting the pollution of the nation’s water sources according to a schedule, based on the most effective technology currently available.

Pollutants

Substances that contaminate the environment, causing harm or discomfort to living organisms.