Balancing Territories on Geographic Size

question 5

Multiple Choice

Balancing territories on geographic size:

• A) can reduce travel expenses.
• B) provides a minimum income for those paid on commission.
• C) cannot be done using a computer.
• D) ensures "equality of opportunity" for all salespeople.
• E) all of the above are correct.

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of output.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and differentiated competition.

Excess Capacity

The failure to produce enough to minimize average total cost; characteristic of monopolistically competitive firms.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced.