A Technique That Can Be Used to Define Important Market

question 134

Multiple Choice

A technique that can be used to define important market segments more precisely and involves using more than one segmentation variable is known as:

• A) principal components analysis.
• B) recursive partitioning.
• C) multi- dimensional scaling segmentation.
• D) multivariate demographic segmentation.
• E) cluster analysis.

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Definitions:

LRAC Curves

Long-Run Average Cost curves, which show the average cost per unit of output when all inputs, including capital, are variable, illustrating economies or diseconomies of scale.

Long-Run Adjustment

The process by which firms adjust their production capacity and input usage to new market conditions over time, beyond short-term fluctuations.

Returns To Scale

Rate at which output increases as inputs are increased proportionately.

Increasing Marginal Product

A situation where each additional unit of input results in an increased amount of output.