When Firms Look for New Users in Groups That Have

question 130

Multiple Choice

When firms look for new users in groups that have never used the product before, the firm is using the ________ strategy.

• A) diversification
• B) product development
• C) geographical-expansion
• D) market-penetration
• E) new-market segment

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Definitions:

Profits Equal Zero

A situation in which a firm's total revenue is exactly equal to its total costs, resulting in no net profit.

Economies of Scale

Cost efficiencies achieved by organizations through their operational scale, with per unit cost diminishing as the scale of production grows.

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Product Differentiation

A strategy used by companies to distinguish their products from those of competitors based on features, quality, or design.