It Is Common for Real Estate Firms to Identify Submarkets

question 21

Multiple Choice

It is common for real estate firms to identify submarkets, such as property types or particular sections of a city, in which they can specialize and concentrate their transaction activity. This practice is referred to as:

• A) internet marketing
• B) open listing
• C) discount brokerage
• D) market segmentation

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Definitions:

Total Cost

The full expense incurred in the production or acquisition of goods or services, including both fixed and variable costs.

Marginal Cost

The supplementary charge triggered by the manufacture of one extra unit of a product or service.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.

Marginal Cost

The incremental cost associated with the production of an additional unit of a product or service.