Which of the Following Correctly Identifies the Motivation of Firms

question 59

Multiple Choice

Which of the following correctly identifies the motivation of firms using a market segmentation strategy?

• A)With limited resources,firms can better satisfy the wants and needs of a smaller target market.
• B)Government regulations require firms to maintain accurate records to show that the firm has not discriminated against a market segment.
• C)This strategy enables a firm to identify common traits in different consumer groups.
• D)Firms can avoid the government's anti-trust laws by selecting a small slice of a larger market.

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Labor

Human effort, whether physical or mental, contributed to the production of goods and services.

Materials

The physical components used in the production of goods and services.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.