Customer Lifetime Value Is a Type of Analysis Used To

question 5

Multiple Choice

Customer lifetime value is a type of analysis used to:

• A)Assess the ethical practices of each salesperson-customer relationship.
• B)Assess the current profit potential of a customer.
• C)Assess the long term profit potential of a customer.
• D)Assess the current profit potential of all the firm's customers.
• E)Assess the long term profit potential of all the firm's customers.

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Definitions:

Marginal Cost Curve

A graphical representation illustrating the change in total cost that arises when the quantity produced changes by one unit.

Average Total Cost

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

Average Total Cost

Average Total Cost is the total cost of production divided by the total quantity produced, reflecting the cost per unit of output.

Average Fixed Cost

This is the total fixed costs of production divided by the number of units produced, reflecting how these costs spread out over the output.