An Important Factor to Consider When Selecting Target Markets Is

question 1

Multiple Choice

An important factor to consider when selecting target markets is:

• A) That they are homogeneous groups
• B) If they are compatible with each other
• C) They come from the surrounding area of the organization
• D) They share the same psychographic characteristics

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Definitions:

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Marginal Product

The increase in output that results from a one-unit increase in the quantity of a single input while holding other inputs constant.

Marginal Productivity Theory

An economic theory that suggests the value of a good or service is determined by the marginal productivity of the inputs used in its production.

Perfectly Competitive

A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence the market price.