-Refer to the Information Above to Answer This Question

question 174

Multiple Choice

-Refer to the information above to answer this question.Assume that there is a shortage of 40 units.What does this mean?

• A)Price will fall.
• B)Price must be $8.
• C)The quantity traded is 40.
• D)Buyers would be willing to pay an additional $4 per unit for the quantity being traded.

Comprehend the role of good communication in securing repeat business.

Grasp the significance of repeat customers in a company's business strategy.

Identify the constructive nature of complaints in a business context.

Understand the importance of being perceived as a customer-focused business through careful listening to complaints.

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Definitions:

Diseconomies of Scale

The situation in which a business grows so large that the costs per unit increase, as opposed to economies of scale where costs per unit decrease with the increase in output.

Long-Run Average Cost Curve

A graphical representation that shows the minimum average cost at which any output level can be produced after all inputs are adjustable. It reflects economies and diseconomies of scale.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to a reduced cost per unit of output.

Search Engine

A software system designed to search for information on the World Wide Web.