While Ethical and Legal Issues Are Associated with All Aspects

question 126

Multiple Choice

While ethical and legal issues are associated with all aspects of marketing, personal selling presents unique issues because

• A)salespeople tend to be unethical.
• B)sales managers are the only people in most sales organizations who worry about ethics.
• C)salespeople interact directly with customers and are, therefore, more visible.
• D)laws regulating personal selling are detailed, complex, and often mistakenly ignored.
• E)customers tend to expect unethical behavior from salespeople.

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Definitions:

Marginal Revenue

The increased earnings a business obtains from the sale of one extra item or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Economic Profit

The divergence between aggregate income and total outlays, inclusive of both tangible and intangible expenses.