Which of the Following Is an Example of an External

question 69

Multiple Choice

Which of the following is an example of an external growth strategy?

• A) Geographic expansion
• B) Improving an existing product or service
• C) Increasing the market penetration of an existing product or service
• D) Extending product lines
• E) Strategic alliances

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Definitions:

Consumer Surplus

The benefit or surplus that consumers receive from purchasing goods and services at a price lower than the highest price they would be willing to pay.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a particular price.

Price Ceiling

A government-imposed limit on the price charged for a product, intended to prevent prices from rising too high.