Under What Circumstances Should Marketers Stress the Sources Characteristics of Credibility

question 7

Essay

Under what circumstances should marketers stress the sources characteristics of credibility and/or attractiveness?

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Definitions:

Most Efficient Output

The level of production where average total costs are minimized.

Explicit Costs

These are direct monetary payments a firm makes to purchase inputs for its production, such as wages, rent, and materials.

Implicit Costs

The opportunity costs of using resources already owned by the firm for production, as opposed to external spending.

Economic Profit

The difference between revenue generated from output and the opportunity costs of inputs used, considering both explicit and implicit costs.