When Firms Grow Larger,they Sometimes Acquire More Market Power,meaning That

question 31

Multiple Choice

When firms grow larger,they sometimes acquire more market power,meaning that they have greater ability to negotiate lower prices with their suppliers.This ability to negotiate lower prices with their suppliers leads to

• A) diseconomies of scale.
• B) diminishing marginal returns.
• C) economies of scale.
• D) constant returns to scale.
• E) increasing marginal returns.

---

Definitions:

Mission Statement

A concise affirmation of the firm’s long-term purpose.

Targeting Process

The method of identifying and reaching specific groups within a market based on shared characteristics or needs.

Target Market

A target market is a specific group of consumers at whom a company aims its products and services, defined by various demographics such as age, gender, income level, and personal interests.

Business-to-business

A sales model focusing on the transaction of products or services between companies, rather than between a company and individual consumers.