Which of the Following Is a Disadvantage of Employing a Multiple

question 136

Multiple Choice

Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if not implemented well?

• A) inability to meet high demand
• B) reduced quality and higher prices
• C) failure to meet diverse customer needs
• D) employee dissatisfaction
• E) frequent research and development failures

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Average Variable Cost

The variable cost of production divided by the quantity of output, representing the cost of labor and materials per unit of production.

Economic Profit

The difference between the total revenue generated by a business and the total costs, both explicit and implicit.

Total Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, over a certain period of time.