Product Diversification Is a Relatively Risky Expansion Strategy Because It

question 15

True/False

Product diversification is a relatively risky expansion strategy because it introduces new products into new markets, unlike other strategies that already have the product or market established.

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Definitions:

Cartel

A coalition of suppliers or manufacturers aimed at preserving elevated price levels and reducing competitive pressures.

Marginal Cost

The upsurge in total expenditure associated with the fabrication of one further unit of a good or service.

Cartel

A formal agreement among competing firms to control prices, limit output, or divide markets to gain an advantageous market position.

Industry Output

The total production or service provision by companies within a specific industry.