A Good Marketing Manager Will Try To

question 154

Multiple Choice

A good marketing manager will try to:

• A) set the desired customer service level before trying to minimize physical distribution costs.
• B) minimize the total cost of physical distribution.
• C) maximize the level of customer service provided by his firm.
• D) minimize storing time and costs.
• E) provide customers with just-in-time delivery service.

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Definitions:

Profit-maximizing Output

The level of production at which a firm achieves the highest possible profit, determined where marginal revenue equals marginal cost.

MC > P

A situation where the marginal cost of producing an additional unit is greater than the price at which it can be sold, suggesting that production should be decreased.

Pure Monopolist

A firm that is the sole seller of a product or service in a market, without any close substitutes, possessing significant market power.

Profit-maximizing Output

The level of production at which a firm can achieve the highest possible profit, determined by where marginal cost equals marginal revenue.