Discuss the Pros and Cons of Using a Rollout as a Market

question 46

Essay

Discuss the pros and cons of using a rollout as a market testing tool.

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Definitions:

Returns to Scale

The rate at which output increases as inputs are increased proportionately.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at different prices.

Deadweight Loss

A loss of economic efficiency that occurs when equilibrium for a good or service is not achieved or is not achievable.