Which of the Following Is NOT One of the Seven

question 78

Multiple Choice

Which of the following is NOT one of the seven most common organizational buying criteria?

• A)price
• B)effectiveness of sales representative
• C)technical capability
• D)past performance

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Definitions:

Diseconomies of Scale

The situation where long-run average costs start to increase as the scale of operation grows beyond a certain point, leading to increased per-unit costs.

Diminishing Returns

A principle in economics indicating that adding more of one factor of production, while holding others constant, will at some point yield lower incremental per-unit returns.

Constant Costs

Costs that remain the same in total, regardless of changes in the volume of goods or services produced.

Average Variable Cost

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