Which of the Following Statements Best Describes the Differences Between

question 118

Multiple Choice

Which of the following statements best describes the differences between the business market and the consumer market?

• A)Organizational buying decisions are usually made independently by a purchasing agent while consumer buying decisions are made jointly.
• B)Business customers tend to be more geographically concentrated whereas customers in consumer markets tend to be more geographically dispersed.
• C)The channel of distribution is less often direct for business markets than for consumer markets.
• D)Purchasing by businesses is a less formal process than it is in consumer markets.

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Definitions:

Marginal

Term used to describe the effects of a change in the current situation. For example, a producer’s marginal cost is the cost of producing an additional unit of a product, given the producer’s current facility and production rate.

Average Increasing

A situation in which the average cost of production goes up as the quantity produced increases.

Long-run Average Total Cost

The average cost per unit of output produced over a period during which all inputs, including capital, are variable.

Diseconomies of Scale

The situation in which a business experiences an increase in average costs per unit when output is increased beyond a certain point.