If a Profit-Oriented Marketing Manager Doesn't Know the Exact Shape

question 104

Multiple Choice

If a profit-oriented marketing manager doesn't know the exact shape of the firm's demand curve, marginal analysis:

• A) is useless.
• B) may be useful anyway-because a profitable region usually surrounds the best price.
• C) will suggest the same price as break-even analysis.
• D) suggests that the only sensible approach is to follow the market leader.
• E) None of these alternatives is true.

---

Definitions:

Depreciation

A reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Capital Equipment

Long-lasting tools, machinery, and infrastructure utilized in the production of goods and services.

Inventory Changes

Adjustments in the quantity or value of goods that a company has in stock, which can affect financial and operational performance.

Personal Income

The total income received by individuals from all sources, including wages, dividends, and government benefits.