If the Marginal Cost for Dinky's Donuts to Advertise One

question 152

Multiple Choice

If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day

• A)only if the marginal benefit the company receives each week is greater than $200 plus an acceptable profit margin.
• B)as long as the marginal benefit the company receives each week is just equal to or greater than $200.
• C)as long as the weekly marginal cost does not rise.
• D)until the marginal benefit the company receives reaches zero.

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Definitions:

Prospecting

The process of searching for potential customers, clients, or buyers in order to develop new business.

Closing

The final step in executing a real estate transaction or sale where ownership is transferred from seller to buyer, or in sales, the process of concluding a sale or sealing a deal.

Personal Selling Process

A direct method of selling in which sales representatives personally meet with potential customers to present products or services, aiming to engage and convert them into buyers.

Six Stages

Refers to a structured process or framework divided into six distinct phases, often used in project management or product development.