Which Term Refers to the Cash Flow from New Customer

question 7

Multiple Choice

Which term refers to the cash flow from new customer relationships through customers' word-of-mouth?

• A) networking potential
• B) core business potential
• C) learning potential
• D) cross-selling potential

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Definitions:

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

Economic Profits

Profits exceeding the opportunity costs of a company; considered an indicator of efficiency and entrepreneurship.

Average Total Cost

The total cost of production divided by the total quantity of goods produced, representing the cost per unit.

Average Variable Cost

The cost of labor and materials divided by the quantity of output produced, reflecting costs that change with the level of output.