The Perspective from Which a Factor Is Viewed Matters in Terms

question 35

Multiple Choice

The perspective from which a factor is viewed matters in terms of determining if, and how much, economic rent it receives. Which of the following examples illustrates this?

• A)Smith currently earns $80,000 as an accountant. If he works as an accountant at another firm, he would earn $76,000.
• B)Jones currently earns $66,000 as an attorney for a large law firm. If he were to work instead at a small law firm, he would earn $55,000.
• C)Smith currently earns $80,000 as an accountant. If he works as an accountant at another firm, he would earn $78,000, but if he works at a job outside accounting, he would earn $60,000.
• D)Jones will pay Smith more to work for him than Brown will pay Smith to work for her.

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Definitions:

Forestall

To prevent, hinder, or obstruct an event, action, or outcome by taking advanced or anticipatory measures.

Objections

Concerns, hesitations, or reasons a potential customer has for not making a purchase, which a salesperson aims to overcome through objection handling techniques.

Setting A Condition

Establishing a specific requirement or criteria that must be met in a given situation or agreement.

Prospects

Individuals or businesses that are potential customers and have been identified as likely to purchase.