Which of the Following Statements by a Sales Manager Best

question 10

Multiple Choice

Which of the following statements by a sales manager best reflects an understanding of the iceberg principle?

• A) "Detailed cost analysis gets you focused on small parts of the problem, whereas general summaries make it easier to see the really big problems."
• B) "Most costs that look like they're fixed are actually changing all of the time."
• C) "Don't tell me that you're certain we're going to increase sales. They were certain that an iceberg couldn't sink the Titanic!"
• D) "Let's not dwell on sales data summaries-let's get below the surface and study the details."
• E) "Cost problems always show up first-but controlling expenses doesn't mean that you won't run into revenue problems."

---

Definitions:

Pure Competition

A term synonymous with purely competitive industry, denoting a market scenario where numerous firms offer identical products, ensuring no singular entity can control the market price.

Monopolistic Competition

A market structure where many firms sell similar but not identical products, allowing for some degree of market power.

Oligopoly

A market structure characterized by a small number of firms that have significant control over market prices and where strategic interactions between the firms play a crucial role.

Pure Monopoly

A market structure characterized by a single seller that controls the entire supply of a unique product or service, with no close substitutes, giving them significant market power.