Early in His Presentation Before the Garage Owner Mentions the Cost,the

question 7

Multiple Choice

Early in his presentation before the garage owner mentions the cost,the salesperson makes the following statement; "You most likely notice our engines cost 25% more than our competitors.That said,the savings in maintenance cost more than make up for the premium price." What objection handling technique is the salesperson using?

• A) product revelation
• B) forestalling
• C) stalling
• D) postponing
• E) circular logic

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Definitions:

AFC Curve

The Average Fixed Cost curve, depicting how the fixed costs of production spread over different quantities of output affect the total cost per unit.

MC Curve

The Marginal Cost curve, representing the increase in total cost incurred from producing one additional unit of a good or service.

AVC Curve

The graph that represents the average variable cost per unit of output at different levels of production.

Variable Cost

Costs that change in proportion to the level of output or activity, such as materials and labor used in production.