The Production of More Product Variety Without a Large Cost

question 73

Multiple Choice

The production of more product variety without a large cost penalty is known as:

• A) market concentration.
• B) market segmentation.
• C) focus differentiation.
• D) mass production.
• E) mass customization.

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Definitions:

Oligopoly

Defines a market structure characterized by a small number of firms dominating the market, leading to limited competition.

Brand Loyalty

Occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buying from multiple suppliers within the same category.

Demand Curve

Represents a graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices, usually downward sloping.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a ratio.