External Information Can Include

question 39

Multiple Choice

External information can include:

• A) direct experiences with the product through inspection or trial.
• B) professional information provided in pamphlets, articles and books.
• C) the opinions, attitudes and feelings of friends, neighbours and relatives.
• D) all of the given answers.

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Definitions:

Opportunity Cost

The price paid for missing out on the alternative that ranks second best when deciding.

Excess Capacity

Refers to a situation where a company has more production ability than is necessary for the current level of demand.

Differentiation Value

The perceived value added to a product or service that makes it stand out from competitors.

Markup Percentage

The percentage added to the cost of a product to calculate the selling price, based on desired profit.