Consider the Graphs That Follow (The Horizontal Axis Represents Activity;

question 6

Essay

Consider the graphs that follow (the horizontal axis represents activity; the vertical axis represents total dollars). Required:
For items A-I that follow, choose the graph that best represents the cost behaviour pattern described. Note: Graphs can be used more than once.
A. Straight-line depreciation on machinery.
B. The cost of chartering a private airplane. The cost is $800 per hour for the first 6 hours of a flight; it then drops to $600 per hour.
C. The wages of table service personnel in a restaurant. The employees are part-time workers who can be called upon for as little as 4 hours at a time.
D. Weekly wages of store clerks who work 40 hours each week. One clerk is hired for every 125 sales made during the month.
E. The cost of tires used in the production of trucks.
Up to 20,000 kilowatt hours (KWH): $4,000
Above 20,000 kilowatt hours: $4,000 + $0.02 per KWH

Recognize the temporal and dynamic nature of consumer behavior.

Understand the importance of tapping into consumer lifestyles for branding and product positioning.

Comprehend Maslow's hierarchy of needs and its relevance to consumer and employee motivation.

Realize the smaller number of buyers in B2B markets compared to B2C markets.

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Definitions:

Restrictions

Limitations or conditions imposed on activities, rights, or behaviors to regulate them.

Innocent Misrepresentation

A false statement made by one party to another, where the person making the statement genuinely believes it to be true.

Rescission

Rescission is a legal remedy that cancels a contract and returns the parties involved to their statuses prior to the contract, as if it never existed.

Rescission

The legal act of cancelling a contract and returning the parties involved to their positions prior to the agreement, as if the contract never existed.