_____ Is the Process by Which Companies Cluster Customers into Homogeneous

question 7

Multiple Choice

_____ is the process by which companies cluster customers into homogeneous groups-be they demographic, geographic, or even psychographic.

• A) Market segmentation
• B) Outsourcing
• C) Insourcing
• D) Product positioning

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Definitions:

AVC

Average Variable Cost; the total variable cost divided by the quantity of output produced, representing the variable cost per unit.

ATC

Average Total Cost, the per unit cost of production that includes all fixed and variable costs.

MR

Marginal Revenue, the additional income earned from selling one more unit of a good or service.

Economic Profit

The excess of total revenue over the complete aggregation of both transparent and hidden costs.