Suppose You Were Evaluating Preferred Attributes in an Automobile

question 28

Multiple Choice

Suppose you were evaluating preferred attributes in an automobile.You are to distribute 100 points in terms of how important each attribute is to you,as follows:
____styling
____handling
____horsepower
____towing capability
____economy
100% TOTAL
This scale illustrates which kind of technique?

• A)constant sum
• B)purchase intent
• C)rank order
• D)semantic differential
• E)none of these

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of earning revenue from these resources elsewhere.

Explicit Costs

These are the direct, out-of-pocket payments made by businesses for operational expenses like wages, rent, and materials.

Monetary Outlay

The amount of money spent on a particular transaction or investment.

Implicit Costs

The opportunity costs that arise when a company uses internal resources without a direct payment.