The Measure That Divides Customer Net Profit by Customer Revenues

question 36

Multiple Choice

The measure that divides customer net profit by customer revenues is referred to as

• A)Customer revenue margin.
• B)Times revenue earned per customer.
• C)Customer profit margin.
• D)Customer net profit.

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Definitions:

Demand Equation

A mathematical expression that relates the quantity of a good that consumers are willing to buy to the good's price and other variables such as income and the price of related goods.

Price Floor

A government-imposed minimum price set above the equilibrium price, preventing market prices from falling below it.

Shortage/Surplus

Conditions where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus) in a market.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a specific price level.