When Sophisticated Computer Modeling Is Used to Design Territories

question 52

Multiple Choice

When sophisticated computer modeling is used to design territories,

• A)the resulting design tends to be inferior to the build-up method.
• B)it typically involves computer technology known as GIS.
• C)that there will be no need for adjustment.
• D)firms typically spend in excess of one million dollars.
• E)None of these.

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Definitions:

ATC

A restated definition for Average Total Cost; it implies the cost per unit produced when both fixed and variable costs are accounted for across all levels of output.

AFC

Average Fixed Cost, which is the fixed costs of production spread out over the number of units produced, declining as production increases.

Average Total Cost

The total costs of production divided by the total output, giving the cost per unit of output calculated by adding fixed and variable costs and dividing by the number of units produced.

Fixed Cost

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of the output level.