Are Those Runner- Up Firms That Are Working to Increase

question 96

Multiple Choice

are those runner- up firms that are working to increase their market share in an industry.

• A)Market followers
• B)Market analyzers
• C)Market leaders
• D)Market challengers
• E)Market nichers

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Definitions:

Average Product

The yield generated for every unit of a production input, determined by dividing the overall output by the amount of the input used.

Labor

The human effort, whether physical or mental, that is used in the production of goods and services.

Law of Diminishing Returns

An economic principle stating that adding more of one factor of production, while keeping others constant, will at some point yield lower per-unit returns.

Marginal Product

The additional output produced as a result of utilizing one more unit of input, holding all other inputs constant.