Which of the Following Statements Best Explains the "Iceberg Principle

question 58

Multiple Choice

Which of the following statements best explains the "iceberg principle"?

• A) Several salespeople in a sales force usually meet their quotas while many others don't.
• B) Many salespeople don't make their quotas because they only try to sell to large customers.
• C) Most consumer decisions are at the 90 percent pre-conscious level.
• D) Ten percent of a firm's customers usually account for 90 percent of its sales.
• E) Good performance in some areas may hide poor performance in other areas if only averages are evaluated.

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, where each seller has little to no influence on the market price.

Long-run Equilibrium

A state in which economic forces such as supply and demand are balanced, and all inputs and outputs in the economy are fully adjusted to these conditions over a long period.

Pure Competition

A theoretical market structure with a large number of sellers and buyers, identical products, and no barriers to market entry or exit, promoting efficient pricing.

Minimum

The lowest allowable or possible amount, level, or number in a given set of circumstances.