When Colgate Promotes a New Tooth-Whitening Product Using Discounts to Retail

question 195

Multiple Choice

When Colgate promotes a new tooth-whitening product using discounts to retail stores and prizes to customers to create immediate sales,the approach is primarily:

• A) franchise building
• B) sales building
• C) territory building
• D) brand-equity building

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Definitions:

TC

An abbreviation for Total Cost, it quantifies the overall expense incurred in the production of goods or services, encompassing both fixed and variable costs.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output expands, often due to complexities and inefficiencies at larger scales.

Long-Run Average Total Cost

The cost per unit of output incurred when all factors of production, including capital, are variable, indicating the lowest possible cost of production for each level of output when the scale of operation is changed.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output, including costs for materials, labor, and energy.