Stacey's Client Group Has Been Gradually Shrinking and She Is

question 130

Multiple Choice

Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as

• A)referral approach.
• B)ambulance chasing.
• C)door-to-door selling.
• D)cold canvass.
• E)repeat contact.

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Definitions:

Industry Entry

The process by which new competitors join an industry, often bringing innovation or increased competition.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.

Economic Profit

The gap between the total income and the sum of all expenses, covering both direct and indirect costs.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price; highly responsive.