In Addition to Current Competitors, It Is Important to Consider

question 9

Multiple Choice

In addition to current competitors, it is important to consider potential market entrants such as firms that might engage in all but one of the following:

• A) Retaliatory or defensive strategies
• B) Market expansion
• C) Forward integration
• D) Low-cost strategies
• E) Backward integration

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Definitions:

Marginal Utility

The boost in contentment or usefulness someone achieves from consuming an additional item of a good or service.

Consumer Surplus

The variance between the price consumers intend to pay for a good or service and the price they actually incur.

Marginal Utility

The extra pleasure or benefit gained by a consumer from using one more unit of a product or service.

Total Utility

The absolute gratification obtained from the utilization of a designated complete quantity of a good or service.