Assume the Following Sales Data for a Company $$\begin{array} { l r } 2018 & \$ 960,000 \\2017 & 750,000 \\2016 & 600,000\end{array}$$

question 185

Multiple Choice

Assume the following sales data for a company: $$\begin{array} { l r } 2018 & \$ 960,000 \\2017 & 750,000 \\2016 & 600,000\end{array}$$ If 2016 is the base year, what is the percentage increase in sales from 2016 to 2017?

• A)60%
• B)25%
• C)125%
• D)160%

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to change.

Product Differentiation

The method of differentiating a product or service from its competitors to enhance its appeal to a specific target audience.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, leading to competition based on factors other than price.

Over-Differentiation

refers to the creation of product variations that exceed customer needs or desires, potentially leading to confusion and reduced sales.