Which of the Segmenting Strategies Carries Higher- Than- Average Risks

question 15

Multiple Choice

Which of the segmenting strategies carries higher- than- average risks in consumer markets?

• A)multiple- segment
• B)differentiated
• C)undifferentiated
• D)concentrated
• E)mass

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Definitions:

Long-run Average Total Cost

The cost per unit of output in which all inputs, including capital, are variable, showing economies and diseconomies of scale over time.

Increasing Returns to Scale

A situation in which a proportional increase in all inputs results in a more than proportional increase in output, demonstrating economies of scale.

Law of Diminishing Returns

An economic principle stating that, holding all else constant, as one input variable is increased, there is a point at which the marginal per unit output starts decreasing.