DesignDeltaz

question 84

Multiple Choice

DesignDeltaz.com outsources projects from various organizations to a large number of designers in its online database.In this case,the social media process supporting the business is referred to as ________.

• A) keylogging
• B) open sourcing
• C) cause marketing
• D) crowdsourcing

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Definitions:

Marginal Cost

The surplus cost involved in the production of an extra unit of a product or service.

Average Revenue

Average revenue is the amount of income generated per unit of goods or services sold, calculated by dividing the total revenue by the number of units sold.

MC < MR

A condition in economic theory indicating that to maximize profit, a firm should produce more units as long as the marginal cost (MC) of producing an extra unit is less than the marginal revenue (MR) gained by selling it.

Profits

The financial gains attained when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain them.