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An entrepreneur reviews service cost per customer even when sales rise. Which analysis does this show?

Answer and explanation

Correct answer: Unit-economics analysis

Direct answer: Option C, unit-economics analysis. Unit economics studies the income and cost connected with one unit of a product or service, such as one customer, one order or one subscription. Step by step: sales may rise; that tells us total revenue or volume is increasing. The entrepreneur then asks how much is earned from each customer and how much it costs to serve that customer. Comparing those per-customer figures shows whether growth is financially healthy, so it is unit-economics analysis. Option A is less correct because sales analysis mainly measures sales volume, revenue or trends and does not necessarily examine cost per customer. Option B is different: customer-satisfaction analysis studies happiness, complaints, loyalty or feedback, not primarily money per customer. Option D is wrong because market-size analysis estimates how many possible customers or how large a market is. Option C fits the exact clue, “per customer” cost. Memory cue: one customer or one sale plus revenue and cost means unit economics.

Related tags

Unit-EconomicsService-CostCustomer-ProfitabilityQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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