Some of the Serious Business Consequences That Occur Due to Using

question 229

Multiple Choice

Some of the serious business consequences that occur due to using low-quality information to make decisions are all of the following except:

• A) Inability to accurately track customers
• B) Inability to identify selling opportunities
• C) The success of the organization depends on appreciating and leveraging the low-quality information
• D) Lost revenue opportunities from marketing to nonexistent customers

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Definitions:

Economies of Scale

Cost advantages that entities attain due to the scale of operation, with costs per unit of output generally decreasing with increasing scale.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the performance exceeding opportunity costs.

Short-Run Equilibrium

The condition in which supply and demand are equal at a particular price level, within a short time frame, before all variables have fully adjusted.