A Virtuous Cycle Occurs

question 251

Multiple Choice

A virtuous cycle occurs

• A)when lobbyists petition members of Congress to grant a public franchise; the lobbyist then raise money for those Congress members who granted the franchise.
• B)when monopoly profits are used to create new products for additional monopoly profits.
• C)when a firm can attract enough buyers initially to increase a product's usefulness to attract even more buyers.
• D)when a firm's sales volume reaches a level where the firm can take advantage of economies of scale; thereby reducing the price of the product to further boost its sales.

---

Definitions:

Incentive Obstacles

Challenges faced in creating or maintaining motivation among stakeholders, often due to misaligned goals or insufficient rewards.

Compensation Plan

A structured policy designed by businesses to remunerate its employees, which can include salaries, wages, bonuses, and commissions.

Supply Chain Coordination

The practices and processes aimed at integrating activities and optimizing efficiencies across the supply chain to better serve the end customer.

Sell-Through

The percentage of units sold versus the number of units that were available to be sold, typically used to evaluate the demand and success of a product.