Firms Try to Minimize Costs and Maximize Profits and in the Process

question 61

Multiple Choice

Firms try to minimize costs and maximize profits and in the process produce:

• A)the goods and services that buyers want at the highest possible cost.
• B)the goods and services that buyers want at the least possible cost.
• C)the maximum amount of goods or services that they are capable of producing.
• D)economically inefficient amounts of goods or services.
• E)only those goods and services which command a very high price in the market.

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Definitions:

Target Market Segments

Specific groups of potential customers identified by companies as the most likely to purchase their products or services.

Reposition

The strategy of changing the market position of a product or brand, often to target new demographics or market segments.

Chocolate Milk

A sweetened chocolate-flavored variety of traditional milk, often consumed as a beverage or used as a dessert ingredient.

Adult Consumers

Individuals over the age of majority who purchase goods and services for personal use, not necessarily restricted by age in all contexts.