You Asked Your Stockbroker to Consider Buying Some Shares of Facebook

question 55

Multiple Choice

You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But first you want to review the summary points in the SWOT analysis the stockbroker's firm did on the company. The following summary points were listed in the SWOT analysis: Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty among its users.
Because of its position in the industry, it risks incurring high costs associated with creating and marketing new products that are designed to perpetuate its industry leadership.
These summary points suggest

• A) that Facebook's products are cash cows.
• B) that Facebook has a first-mover advantage.
• C) that Facebook's products are question marks.
• D) that Facebook has a superior marketing strategy versus its peers.
• E) that Facebook has a late-mover advantage.

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Definitions:

Equilibrium Price

The cost point where the amount of a product or service that buyers want matches the amount that sellers offer, leading to equilibrium in the market.

Supply Increases

A situation where the quantity of a good or service that producers are willing and able to offer for sale rises, due to factors like lower production costs or increased demand.

Demand Curve

An illustrated chart showing the connection between a product's price and the level of demand from buyers.

Price of Quinoa

The cost at which quinoa, a high-protein, gluten-free grain, is sold in the market.