Firms Use a ________ Strategy to Provide a Specialized Product

question 35

Multiple Choice

Firms use a ________ strategy to provide a specialized product or service for a narrow target market better than competitors.

• A)product differentiation
• B)market niche
• C)mass customization
• D)process efficiency
• E)low-cost leadership

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and opportunity costs, indicating true profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wage, rent, and materials.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Accounting Profit

The total revenue of a business minus its explicit costs, not including opportunity costs.