When Expenses Are Greater Than the Potential Increased Sales from Market

question 43

Multiple Choice

When expenses are greater than the potential increased sales from market segmentation, a firm should

• A) not consider market segmentation at this time.
• B) combine departments within the company to make the process more streamlined.
• C) reduce production costs or increase prices to facilitate the segmentation process.
• D) seek alternate channels of distribution, including Internet sales.
• E) discontinue manufacturing any products that are not in the mature stage of their product life cycle.

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Definitions:

Agency Law

The legal principles governing the relationship between an agent who acts on behalf of another person or entity, known as the principal, and the extent of their legal authority.

Principal-Employer

The primary entity or individual who employs and is responsible for the actions of their workers or agents.

Wrongful Acts

Actions or conduct that are unlawful or infringe upon someone's rights.

MRSxy

The marginal rate of substitution (MRSxy) is the rate at which a consumer is willing to trade off one good (x) for another (y) while maintaining the same level of utility.