Understanding How Consumers View a Product Is Important to Successful

question 176

True/False

Understanding how consumers view a product is important to successful product positioning.

---

Definitions:

Contestable Market

A market structure where there are no barriers to entry or exit, and hence, firms face potential competition.

Exceeds Marginal Cost

The condition where the revenue received from the sale of an additional unit of output is greater than the cost required to produce that additional unit.

Contestable Markets

Markets where the threat of potential entry by competitors influences the behavior and pricing of existing firms.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogenous products, perfect information, and free entry and exit, leading to price taking behavior.