Which of the Following Is an Example of a Dynamic

question 46

Multiple Choice

Which of the following is an example of a dynamic process?

• A) Samsung accepts the return of a defective television from its dealer.
• B) Starbucks places an order for coffee beans from its local supplier.
• C) Amazon.com hires customer service representatives to help customers with their online orders.
• D) Nike uses Facebook and Twitter to generate buzz about its new line of running shoes.
• E) IBM orders more CPUs for a cluster.

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Definitions:

Marginal Cost

The monetary requirement for the generation of one additional unit of a good or service.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity of output produced. It measures the cost per unit of output.

Ceteris Paribus

a Latin phrase meaning "all other things being equal," used in economic models to isolate the effect of one variable.

Economies of Scale

The financial advantages gained by companies due to their operational scale, where there's a general decline in the cost per unit of output with the growth in scale.