Business
Business, 21.02.2020 17:32, alexkrol10

The total cost of reaching consumers (C) depends on the number of consumers (N), advertising costs (A), and transportation costs (T). The linear cost prediction model is represented as: C = c - nN + aA + tT where c, n, a, and t are constants and c estimates the total cost when the remaining variables are zero. Which of the following interpretations is true about this model?

A. Change in variables N, A, and T will not reflect any changes in c.

B. Change in variables N, A, and T will cause n, a, and t to change.

C. When variables N, A, and T are zero, C = c - n + a + t.

D. As n decreases, c will increase.

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Answers: 1

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