Reducing the Total Cost of Ownership Will Make the Customer

question 26

Multiple Choice

Reducing the total cost of ownership will make the customer less price-sensitive to

• A) switching costs.
• B) acquisition cost.
• C) disposal costs.
• D) possession costs.
• E) usage costs.

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Definitions:

Positive Production Externality

A situation where the production of a good or service results in beneficial effects for other people or entities that were not involved in the transaction.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by anyone without reducing its availability to others.

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.