Prior to 2017,H&M Was Growing at a Torrid Pace,however,several Changes

question 19

Multiple Choice

Prior to 2017,H&M was growing at a torrid pace,however,several changes took place which are represented by all of the following statements except:

• A)revenue growth was driven by store openings and the company did not open new stores.
• B)profits have been stagnant since discount retailers have lower prices.
• C)online competitors are putting a lot of pressure on H&M sales.
• D)customers are lured away by Britain's Asos and Germany's Zalando free shipping offers.
• E)H&M had a successful business model,which did not change with market conditions.

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Definitions:

Least-Cost Combination

is an economic principle where firms aim to produce a given output at the minimum possible cost by choosing the optimal combination of inputs.

Purely Competitive Conditions

Purely competitive conditions describe a market situation where numerous small firms compete against each other, selling homogeneous products, with no single firm able to influence market prices.

MU

MU typically stands for Marginal Utility, which is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Marginal Product

The additional output produced as a result of using one more unit of a variable input, like labor or capital.