Companies Work Very Hard to Reduce the Number of Their

question 25

Multiple Choice

Companies work very hard to reduce the number of their present customers which never return.This customer defection is often referred to as:​

• A)​Customer churn
• B)​Clickstream defection
• C)​Balking
• D)​Revenue Exodus

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Definitions:

Productive Efficiency

A situation where an economy or a production entity cannot produce more of one good without sacrificing production of another good and by using the least costly production techniques.

Long-Run Adjustments

The process by which firms adjust their production levels, input mixes, and operations to reflect changes in the market or economic conditions over a longer period.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a utility level equal to the cost of producing it.

Marginal Benefit

The incremental enjoyment or advantage received from the consumption or creation of one more unit of a good or service.