Which of the Following Costs Do NOT Form a Part

question 14

Multiple Choice

Which of the following costs do NOT form a part of burden in determining customer lifetime value?

• A) Training cost
• B) Entertainment cost
• C) Cost of periodic meetings
• D) Annual Thanksgiving turkey gift baskets
• E) Purchase cost of the product

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Definitions:

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

Consumer Surplus

The divergence between the total payment consumers are willing to make for a product or service and what they really pay.

Demand Increase

A situation where consumers are willing and able to purchase more of a product or service at each price level, often caused by changes in tastes, income, or prices of related goods.

Consumer Surplus

The separation in monetary terms between what consumers are willing to pay for a good or service and their final payment amount.