According to the Focus on Entrepreneurship Box in Chapter 13,Dan

question 76

Multiple Choice

According to the Focus on Entrepreneurship box in chapter 13,Dan Kelley,CEO of Tierra Dynamic Company,boosted international sales from zero to 25 percent of annual revenues.Of the following,what was most important in the international success of Tierra Dynamic Company?

• A)Company executives waited for potential customers to seek out the company's products.
• B)The company proactively went for the world.
• C)The company relied on its reputation to bring success since it had been family-owned for years.
• D)The company realized that international customers had the same needs as domestic customers.
• E)The company avoided using outside sources of information and support since it had been successful on its own.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service, taking into account factors that vary with production levels.

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Rent-Seeking Behavior

Activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulating the social or political environment.

Net Social Gain

The total benefit to society from producing and consuming a good or service, taking into account both the private benefits and costs and any external benefits or costs.