Network(multilevel)marketing Is Different from Traditional Sales in That It

question 18

Multiple Choice

Network(multilevel) marketing is different from traditional sales in that it:

• A)creates a pyramid with the CEO at the top and the salespeople at the bottom
• B)eschews growth of the salesforce for a given product
• C)relies on an interconnected network of independent salespeople to sell the product directly
• D)focuses on paid advertising instead of word-of-mouth publicity
• E)allies itself with competing products and service providers

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Definitions:

Competitive Labor Market

A market where employers compete to hire the best, and workers compete for the best satisfying job, with wage rates determined by supply and demand.

Total Product Curve

A curve that shows the relationship between the quantity of inputs used in production and the total quantity of output produced.

Marginal Revenue Product

The additional revenue produced from using one more unit of an input.

Marginal Labor Cost

The additional cost incurred by hiring one more unit of labor.