Which of the Following Statements About Concessions Is FALSE

question 56

Multiple Choice

Which of the following statements about concessions is FALSE?

• A)Don't assume the buyer will automatically understand the value of your concessions.
• B)Concessions should gradually increase in size.
• C)Don't automatically agree to "split the difference."
• D)Use silence to strengthen your position.
• E)Don't accept the buyer's first attempt at a concession.

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Definitions:

Scale of Production

The size or extent of the production operations of a firm, determining its capacity to produce goods or services.

Average Costs

The total cost of production divided by the number of units produced, representing the cost per unit of output.

Returns to Scale

The variation in production output resulting from a proportional alteration of all input factors in the manufacturing process.

Constant-Cost Industry

An industry in which the input prices and production costs remain constant as the industry output changes.