The Key Goal for Retailers in the Accelerated Development Phase

question 159

Multiple Choice

The key goal for retailers in the accelerated development phase of the retail life cycle is to

• A) recover start-up costs.
• B) establish a dominant position in the fight for market share.
• C) delay entering the decline stage of the retail life cycle.
• D) find ways of discouraging customers from moving to low-margin, mass-volume outlets.
• E) establish a retail concept that is a sharp departure from existing competition.

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Definitions:

Short Run

A period in economic analysis during which at least one input, such as plant size or capital, is fixed, limiting the ability to adjust to demand changes.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes in the economic environment.

Specialization

The process of focusing effort and resources on a limited number of activities, goods, or services to gain a comparative advantage in production.

Decreasing Returns To Scale

Long-run average total cost increases as output increases (also known as diseconomies of scale).