In the Circular-Flow Diagram,which of the Following Items Does Not

question 94

Multiple Choice

In the circular-flow diagram,which of the following items does not flow from firms to households?

• A)goods
• B)services
• C)capital
• D)profit

Understand the relationship between brand personality and brand equity.

Explain the concept of lifestyle and its importance to marketing.

Distinguish between psychographics and demographics and their roles in marketing.

Understand how the VALS typology segments consumers based on values and lifestyles.

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Definitions:

Economic Profits

The excess of total revenues over the total costs, including both explicit and implicit costs, indicating the profitability beyond the normal return of investments.

Natural Monopoly

A market condition where a single supplier can provide a product or service at a lower cost than any potential competitor, often due to economies of scale.

Average Total Cost

The total cost of production divided by the quantity produced, representing the average cost per unit of output.

Marginal Cost

The added cost incurred by producing one additional unit of a product or service.