As You Prepare for an Important Final Examination on Positioning,a

question 2

Multiple Choice

As you prepare for an important final examination on positioning,a casual friend stops by unexpectedly to tell you she thinks she is about to lose her job.It's clear she wants to talk to someone,and from your friend's perspective,you appear to have some time to talk.How would you best handle this situation?

• A) Stop your studying and console your friend throughout the evening in an effort to become closer friends.
• B) Politely tell your friend that you would love to talk after you have finished studying,if time permits.
• C) Order a large pizza with beverages and ask her to study with you.
• D) Tell your friend you have no time for idle talk as you are in the process of studying for an examination.Give her the name of one of your classmates.

---

Definitions:

Market Entry

The process or strategy by which a company enters a new market, facing and overcoming barriers to entry.

Market Price

the current price at which a good or service can be bought or sold, determined by supply and demand forces in the market.

Average Total Cost

The sum of fixed and variable production costs divided by the total amount of produced goods.

Long-run

A time period in which all factors of production, including capital, are variable, allowing full industry adjustment.