The Manager of an Ice Cream Parlour Is Planning to Introduce

question 16

Multiple Choice

The manager of an ice cream parlour is planning to introduce new flavours into his product line.He decides to take feedback and suggestions from consumers as part of the process to develop innovative and interesting new ice cream flavours.He is using for idea generation.

• A)internal research
• B)reverse engineering
• C)brainstorming
• D)customer input
• E)licensing

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Definitions:

Purely Competitive Market

A market structure characterized by a large number of small firms selling identical products, with no single firm able to influence market prices.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.

Profit-Maximizing Output

The level of production at which a firm achieves the maximum possible profit, where marginal cost equals marginal revenue.

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.