The Market Leader Normally Gains the Most When ________

question 8

Multiple Choice

The market leader normally gains the most when ________.

• A) its total market diminishes
• B) it achieves expanded market share
• C) its personal communication channels expand
• D) the niche marketing efforts by other firms expand
• E) the major global competitors enter the market

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Definitions:

Marginal Cost

The charge of crafting one more unit of a product or service.

Product Markets

Markets where goods and services produced by businesses are sold to households.

Negative Externalities

These are costs that are suffered by a third party as a result of an economic transaction, which are not reflected in the market price.

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large as a result of an economic transaction.