Which of the Following Is a Key Difference Between Market

question 75

Multiple Choice

Which of the following is a key difference between market development strategy and diversification strategy?

• A)Diversification offers products in a new market, whereas market development involves offering a product in the existing market.
• B)Diversification occurs when a new product is offered in an existing market, whereas market development takes place when an existing product is offered in a new market.
• C)Diversification involves development of new product, whereas market development uses an existing product.
• D)Diversification involves low levels of risk, whereas market development is characterized by high levels of risk.
• E)Market development offers products in a new market, whereas diversification involves
• Offering a product in the existing market.

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Definitions:

Utility Function

A mathematical representation in economics that assigns a value to each possible choice or bundle of goods to reflect the satisfaction or happiness a consumer derives from it.

Consumption

The application of goods and services by domestic units.

Interest Rate

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on investment.

Income

Earnings received by an individual or entity, typically through wages, investments, or business activities, over a certain period.