Suppose Fergie's Florist Experiences ________ Up to a Certain Point

question 148

Multiple Choice

Suppose Fergie's Florist experiences ________ up to a certain point and ________ beyond that point. Its long-run average cost curve is most likely to be U-shaped.

• A) diseconomies of scale; economies of scale
• B) constant returns to scale; economies of scale
• C) diseconomies of scale; constant returns to scale
• D) economies of scale; diseconomies of scale

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Definitions:

Global Market Segmentation

The process of dividing the worldwide market into distinct subsets of consumers with common needs or characteristics for targeted marketing.

Product Offerings

The various products and services a company makes available to customers.

Position

Refers to a brand's or product's unique standing and identity in the marketplace relative to its competitors.

Consumers

Individuals or organizations that use economic services or commodities.