Sean Attributes the Success of His Video Game Arcade to Advertising

question 6

Multiple Choice

Sean attributes the success of his video game arcade to advertising on the most popular website for gamers.Recently,the website raised ad prices so Sean has cut his advertising in half.He believed that positive word of mouth will be enough now that his game parlor is well established.However,sales are slipping.The problem occurs in the ________ activity of the value chain.

• A)Inbound logistics
• B)Operations
• C)Outbound logistics
• D)Marketing and sales
• E)Service

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Definitions:

Profit-Maximizing

The process or strategy used by businesses to achieve the highest possible profit from their operations, often by optimizing production and pricing.

Marginal Cost

The extra expense incurred for producing an additional unit of output, emphasizing the concept of incremental cost analysis.

Total Profit

The overall financial gain calculated by subtracting total costs from total revenue.

Collude

To come together in secret agreement, especially for a deceitful or illegal purpose.