Business Cycle Fluctuations Typically Arise Because

question 70

Multiple Choice

Business cycle fluctuations typically arise because

• A)the actual supply of goods and services ends up being more or less than what consumers were expecting.
• B)the actual demand for goods and services ends up being more or less than the expected supply of goods and services.
• C)the actual demand for goods and services ends up being more or less than what firms were expecting.
• D)prices tend to be flexible in the short run.

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Definitions:

Customer-Sustaining Costs

Expenses involved in maintaining relationships with existing customers, such as service and support costs.

Production Costs

The total expense incurred in the process of creating a product or service, including raw materials, labor, and overhead expenses.

Customer Relationship Management

A strategy in business that focuses on developing and maintaining lasting relationships with customers to enhance loyalty and retention.