Which of the Following Is a Difference Between Profit Organizations

question 45

Multiple Choice

Which of the following is a difference between profit organizations and nonprofit organizations?

• A) Profit organizations focus on profit and sales maximization,whereas nonprofit organizations seek to redistribute income.
• B) Profit organizations use public service advertisements for promotion,whereas nonprofit organizations use commercial advertisements for promotion.
• C) Profit organizations market complex behaviors or ideas,whereas nonprofit organizations market tangible goods.
• D) Profit organizations adopt undifferentiated segmentation strategies,whereas nonprofit organizations adopt differentiated segmentation strategies.

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Definitions:

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced; these costs do not vary with the level of output.

U-shaped Curve

A graphical representation showing a relationship where initial decreases lead to a minimum point, followed by subsequent increases.

Total Cost Curve

A graphical representation that shows the total cost of producing different levels of output, illustrating how costs change with production volume.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good varies as the quantity of the good produced changes.