The Public Is Becoming More Aware of How Marketers' Activities

question 13

Multiple Choice

The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to

• A) raise prices in order to increase their profits so that they can contribute to philanthropic causes.
• B) reduce the quality of their products in order to save money and provide less expensive products to their consumers.
• C) reduce their profits by donating more time and money to improve social welfare and environmental conditions.
• D) enact laws requiring companies to work toward the welfare of customers and society.
• E) create a responsible approach to developing long-term relationships with customers and society.

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Definitions:

Total Output

The entire quantity of goods or services produced by an individual, firm, industry, or economy within a specified period.

Implicit Costs

Costs that represent the value of resources used in production for which no direct payment is made.

Explicit Costs

Direct, out-of-pocket payments a firm makes to purchase the inputs it needs for production, such as wages, rent, and materials.

Calendar Time

The concept of time as measured by calendar units, such as days, months, and years, used in planning and scheduling.