When Toys- R- Us Opened Kids- R- Us and Babies-

question 16

Multiple Choice

When Toys- R- Us opened Kids- R- Us and Babies- R- Us,the firm was using the method of .

• A)diversification
• B)market development
• C)product development
• D)market penetration

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Definitions:

Levels

Levels refer to the different positions or stages in a hierarchical structure or process, indicating varying degrees of magnitude, importance, or progress.

Efficient Scale

The level of production that minimizes long-term average total costs, resulting from economies of scale without incurring diseconomies of scale.

Marginal Cost

The supplementary cost attached to the output of an additional product or service unit.

Diminishing Marginal Product

The principle stating that as one inputs more of a factor of production while holding other inputs constant, the added output produced from each additional unit of the variable input eventually decreases.