An Increase in the Demand for Automobiles Will Increase the Demand

question 91

Multiple Choice

An increase in the demand for automobiles will increase the demand for labor used to produce the automobiles due to

• A) an increase in the marginal revenue product of labor.
• B) a decrease in the marginal revenue product of labor.
• C) an increase in the marginal revenue product of automobiles.
• D) a decrease in the marginal revenue product of automobiles.
• E) a decrease in the price of automobiles.

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Definitions:

Customer Communication

The two-way information flow between the firm and its customer.

Info Completeness

Refers to the extent to which information is whole, full, or includes all necessary components.

Lifetime Value

The net present value of a customer’s business over the span of his or her relationship with an organization.

Customer Profitability

An analysis to determine the financial value a customer brings to a business over time, considering revenues and costs associated with the relationship.