When a Company Positioned in the "Middle" Market May Want

question 67

Multiple Choice

When a company positioned in the "middle" market may want to introduce a lower-priced product line this is an example of

• A) down-market stretch.
• B) maintenance.
• C) line modernization.
• D) up-market stretch.
• E) product-line length.

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Definitions:

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.

Marginal Productivity

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Resource Price

The cost associated with acquiring resources or inputs needed for production, such as raw materials, labor, and capital.

Anaconda Smelting Company

A historical company involved in the process of melting and refining metal ore to separate it from its impurities.