Once You Have Made an Offer,you Should ________

question 17

Multiple Choice

Once you have made an offer,you should ________.

• A) wait for other party's response before revising it
• B) revise it only if it exceeds the party's target point
• C) revise it if it falls in the bargaining zone
• D) avoid revising it and try to make it your final offer

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Definitions:

Marginal Cost

The financial outlay for making an additional unit of a product or service.

Average Total Cost

The total cost divided by the number of goods produced; it includes all variable and fixed costs.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it varies with production levels.

Average Fixed Cost

The constant expenses associated with production, which remain unaffected by the amount of goods produced, divided by the number of items made.