The Major Cigarette Companies Have Been Experiencing a Decline in Sales

question 123

Multiple Choice

The major cigarette companies have been experiencing a decline in sales due to the overall decrease in smoking across Canada in recent years. These companies are being affected by which dimension of their external environment?

• A) Technological
• B) Global
• C) Business
• D) Socio-cultural
• E) Economic

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Definitions:

Utility Function

A mathematical representation that attaches a level of utility (satisfaction) to each possible basket of goods, allowing the ranking of these baskets from least to most preferred.

Edgeworth Box

A diagram used in economics to show various distributions of resources and to analyze competitive equilibria between two agents with fixed resources.

Contract Curve

In microeconomics, it represents the set of optimal allocations of resources between two or more parties from an initial situation.

Pareto Optimal

A condition where resources are distributed in such a way that improving the situation of one person necessitates worsening the situation of another person.