When a Firm Provides a Specialized Product or Service for a Narrow

question 61

Multiple Choice

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy.

• A) product differentiation
• B) market niche
• C) mass customization
• D) process efficiency

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Definitions:

Production Relationships

The correlations between input factors and the resulting output in the production process of goods or services.

Production Possibilities Frontier

A graph showing all the possible highest production levels for two or more products, given certain inputs.

Trade

The act of buying, selling, or exchanging goods and services between people, firms, or countries.

Consumption Combination

The mix of goods and services that a consumer chooses to consume at a given time based on their preferences and budget.