Some Argue That the Financial Crisis of 2007-2009 Was Caused

question 185

Multiple Choice

Some argue that the financial crisis of 2007-2009 was caused by a poor understanding of risks in the economy. One reason for that thinking is that

• A) credit card companies did not disclose who defaulted on their loans.
• B) banks' secrecy laws prevented them from reporting which homeowners were behind in their mortgage payments.
• C) mortgage brokers did not use the Internet to check on default rates.
• D) some bond rating agencies' ratings did not disclose the true extent of the riskiness of mortgage-backed assets.

Identify the marketing approaches during the decline stage of the product life cycle.

Recognize the risks associated with family branding strategies.

Discern the differences between differentiation and positioning.

Understand strategic options for managing declining products.

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Definitions:

Marginal Revenue

The extra revenue produced by the sale of an additional unit of a product or service.

Relatively Elastic

A characteristic of a good or service with a demand that is sensitive to changes in price, meaning that small changes in price lead to larger changes in quantity demanded.

Marginal Revenue

The surplus earnings obtained from the sale of one extra unit of a product or service.

Total Revenue

The overall income generated by a business from its sales activities, calculated by multiplying the price of goods by the quantity sold.