The _____ Is the Limit Approached by Market Demand as Industry

question 126

Multiple Choice

The _____ is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment.

• A) market forecast
• B) product-penetration percentage
• C) company demand
• D) market minimum
• E) market potential

---

Definitions:

Constant Returns to Scale

A situation in production where increasing all inputs by a certain factor results in output increasing by the same factor.

Competitive Equilibrium

A market state where supply equals demand, resulting in an efficient distribution of goods and services without excess.

Price Ceiling

A government-imposed limit on the price charged for a product, intended to protect consumers from high prices.

Marginal Cost

The additional cost incurred in producing one more unit of a good or service.