Which of the Following Is NOT an Explanation for Why

question 40

Multiple Choice

Which of the following is NOT an explanation for why MICRO-marketing may cost too much in some firms?

• A) Some managers make decisions as if customers are eagerly awaiting any product they produce.
• B) Production managers focus on designing products that are easy to make.
• C) Financial managers reduce finished-product inventories and force "out of stock" situations.
• D) Marketing managers do target marketing.
• E) Some managers don't see a business as a "total system" focused on customers.

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Definitions:

Average Variable Cost

The cost per unit of varying inputs in the production process, calculated by dividing total variable costs by the quantity of output produced.

Economic Profits

Profits calculated by subtracting total explicit and implicit costs from total revenues; measures the excess over both the opportunity cost of capital and the wages that business owners could have earned elsewhere.

Marginal Cost

The escalation in total expenses incurred from the production of an additional unit of a product or service.

Marginal Costs

The change in total cost that comes from making or producing one additional item.