Over the Last Few Months, Carlos and His Colleagues Have

question 14

Multiple Choice

Over the last few months, Carlos and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Carlos has also identified what he believes is an advantage his competitors cannot match. Carlos and his colleagues have been developing

• A)a business mission statement.
• B)a strategic vision.
• C)team-building exercises.
• D)a marketing strategy.
• E)competitive assessments.

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Definitions:

Average Variable Costs

The total variable costs of production divided by the quantity of output produced, representing the variable cost per unit of output.

Marginal Cost

The increase or decrease in the total cost that arises when the quantity produced is incremented by one unit.

Average Variable Cost

is the cost that varies with the level of output, calculated by dividing the total variable costs by the quantity of output produced.

Diminishing Returns

A rule that asserts when one input in the production process is augmented without changes to the others, there will ultimately be a decline in output after reaching a specific level.