Which of the Following Best Explains Why Avon Expanded to the International

question 23

Multiple Choice

Which of the following best explains why Avon expanded to the international market?

• A) increased domestic competition in the door-to-door cosmetic industry
• B) increased number of American women in the workforce
• C) decreased restrictions on cosmetics in the Chinese market
• D) decreased number of qualified sales representatives in the U.S.

---

Definitions:

Consumer Surplus

The economic benefit derived by consumers from being able to purchase a product for a price that is less than the maximum price they are willing to pay.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Price Floor

A government- or authority-imposed minimum price that can be charged for a product or service, often above the equilibrium price.

Network Externality

A situation where the value of a product or service increases as more people use it.