Dun's Burgers Has Decided to Open Takeaway Counters That Will

question 15

Multiple Choice

Dun's Burgers has decided to open takeaway counters that will be open until 11 p.m.to cater to people who return late from work.This turns out to be an excellent strategy as Dun's becomes a hot favorite with the people who work late shifts.This is an example of ________.

• A)differentiation strategy
• B)technology enhancement strategy
• C)cost leadership strategy
• D)divestiture strategy
• E)focus strategy

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Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs.

Average Variable Cost

The cost per unit of producing goods or services that changes with the level of output, including costs like labor and materials, divided by the quantity of output produced.

Average Total Cost

The total cost divided by the quantity of output produced, representing the per-unit production cost.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a good or service.