Which of the Following Strategies Is Also Called Establishing High

question 4

Multiple Choice

Which of the following strategies is also called establishing high switching costs?

• A) increasing production
• B) locking in suppliers
• C) reducing costs
• D) locking in customers

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Definitions:

Average Variable Costs

This represents the total variable costs (costs that vary with the production level) divided by the quantity of output produced.

Total Costs

The sum of all costs incurred by a business in producing a particular quantity of a good or service, including both fixed and variable costs.

Economic Cost

The total cost of choosing one action over another, including both explicit costs and opportunity costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.