Regarding Break-Even Analysis, a Good Marketing Manager Knows That

question 148

Multiple Choice

Regarding break-even analysis, a good marketing manager knows that:

• A) a high fixed-cost contribution per unit will lead to high profits.
• B) assuming a straight-line total revenue curve incorrectly suggests that any quantity can be sold at the assumed price.
• C) break-even analysis is useless for comparing pricing alternatives.
• D) the usual straight-line total cost curve applies only when economies of scale exist.
• E) All of these alternatives are correct.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced when holding two or more contradictory beliefs, ideas, or values, or when one's behavior contradicts their established beliefs.

Past Experiences

Events or occurrences that have taken place in an individual's life prior to the present moment, influencing their behavior and decision-making.

Negative Thinking

A cognitive process wherein an individual consistently perceives or anticipates the worst possible outcomes or focuses on the most negative aspects of a situation.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, leading to decreased motivation and function.