Generally Speaking, Companies Prefer Doing Business with Customers Who

question 74

Multiple Choice

Generally speaking, companies prefer doing business with customers who:

• A) order small quantities rather than large quantities.
• B) often change their orders.
• C) require special packaging or handling.
• D) request normal delivery times.
• E) need specialized engineering design changes.

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Definitions:

Marginal Cost

The variation in the overall cost of production that occurs with an increase of one unit in the quantity produced.

Pollution Abatement

Measures taken to reduce, control, or eliminate pollution from various sources to improve environmental health.

Diminishing Returns

Diminishing returns is an economic principle stating that as one factor of production increases while others are held constant, the additional output (returns) from the increased factor will eventually decrease.

Free Ride

Benefiting from a service or good without having to bear the cost or effort of obtaining it, usually in the context of public goods.