To Achieve Above-Average Levels of Profitability,low-Share Niche Businesses Need to Focus

question 37

Multiple Choice

To achieve above-average levels of profitability,low-share niche businesses need to focus on their products and ________.

• A)keep their market share high
• B)divest for cash flow
• C)keep expenses low
• D)harvest for cash flow
• E)expand their product line

Understand the process of consolidation and the presentation of consolidated financial statements.

Recognize the impact of dividends and net income from investments on a company's income.

Understand the financial impact of the Great Recession of 2007-2008 on social security funds.

Analyze the dynamics between social security fund collections and distributions.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, signifying the cost per unit of output.

Average Fixed Cost

The total fixed costs of production divided by the number of units produced, showing the fixed cost per unit.

Fixed Factor

An input in the production of goods and services that cannot be easily increased or decreased in the short run.

Marginal-cost Schedule

A table or graph showing how the cost of producing one more unit of a good or service varies as the production level changes.