When Consumers Change Phone Service Providers They Are Frequently Required

question 127

Multiple Choice

When consumers change phone service providers they are frequently required to maintain service with the provider for a specified time period. This is an example of a

• A)cost to a producer to exchange equipment in a facility when new technologies emerge.
• B)cost of changing the firm's strategic group.
• C)one-time cost suppliers incur when selling to a different customer.
• D)one-time cost customers incur when buying from a different supplier.

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Definitions:

Interest Rate

Interest rate is the percentage charged by a lender to a borrower for the use of assets, adjusting for the cost of credit or the return on investment.

Lump Sum

A single payment made at a particular time, as opposed to several smaller installments.

Future Value

The value of an investment at a specified date in the future that accounts for a specified rate of interest or rate of return.

Interest Rate

The amount charged by a lender to a borrower for the use of assets expressed as a percentage of the principal.