Product Development and Diversification Can Be Characterized as _____

question 24

Multiple Choice

Product development and diversification can be characterized as _____.

• A)product mix strategies
• B)strategies based on differentiation
• C)target market segmentation strategies
• D)cost leadership strategies

---

Definitions:

Substitution Effect

The change in consumption patterns due to a shift in relative prices that makes one product more economically attractive than another.

Output Effect

The output effect refers to the impact changes in production volume have on a company's total costs and profitability.

Substitute Resource

A resource that can be used in place of another in production processes, often influencing supply and price levels.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.