Which of the Following Would Not Be Used in Calculating

question 106

Multiple Choice

Which of the following would not be used in calculating the profitability of a segment?

• A) segment perceptions
• B) segment size
• C) segment adoption percentage
• D) profit margin percentage
• E) fixed costs

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Definitions:

Opportunity Cost

Surrendering the potential for benefits from different routes when opting for a specific path.

Production Possibilities Frontier

A chart illustrating the maximum production potential for two or more items, considering a specific amount of inputs.

Positive Statement

An objective and fact-based statement or claim that describes how the world actually is, as opposed to what it should be, often used in economic analysis.

Normative Statement

A value judgment that expresses an opinion or belief about what ought to be, rather than statements of fact.