Part of the Growth Strategy for Yum! Brands,the Parent Company

question 116

Multiple Choice

Part of the growth strategy for Yum! Brands,the parent company of KFC,Pizza Hut,and Taco Bell,is expansion of its fast food businesses into new markets in China,Russia,and India.This type of expansion would be a __________ strategy.

• A)product development
• B)market penetration
• C)diversification
• D)market development
• E)market saturation

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Definitions:

Minimum Average Total Cost

The lowest point on the curve that shows the average cost of producing each unit of output when all input costs are considered over various output levels.

Marginal Cost

The cost added by producing one additional unit of a product or service.

Long-Run Equilibrium

A state in which all factors of production are variable, allowing firms to adjust their inputs in response to market conditions, resulting in no firm having an incentive to enter or exit the market.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, reflecting the highest possible welfare.