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Positioning to Avoid Competition May Be Best When the Product's

question 12

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Positioning to avoid competition may be best when the product's performance characteristics do not differ significantly from competing brands.


Definitions:

Screen Printing

A printing technique where a mesh is used to transfer ink onto a substrate, except in areas made impermeable to the ink by a blocking stencil.

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net gain or loss for a business.

Contribution Margin

Contribution margin is the amount of revenue remaining after deducting the variable costs of producing a product, indicating how much contributes to covering fixed costs and generating profit.

Variable Costs

Costs that fluctuate based on the level of a business’s activity.

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