If a Customer Cannot Be Returned to Profitability and the Customer

question 18

Multiple Choice

If a customer cannot be returned to profitability and the customer is dropped,

• A)The company's overall profit will increase.
• B)The company's revenue will decrease in the short-run.
• C)The managers will have more resources to serve profitable customers
• D)The company's over profit will increase,the company's revenue will decrease in the short-run,and the managers will have more resources to serve profitable customers.

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Definitions:

Private Consumption

The total value of all goods and services consumed by private households.

Pareto Efficient

An economic state where resources are allocated in a way that it is impossible to make any one individual better off without making at least one individual worse off.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Private Good

An economic product or service that is consumed by an individual or a specific group, characterized by its exclusivity and rivalry in consumption.