When a Firm Becomes So Large It Is Difficult to Coordinate

question 152

Multiple Choice

When a firm becomes so large it is difficult to coordinate and control,it is most likely that

• A) economies of scale have begun.
• B) diseconomies of scale have begun.
• C) average total cost begins to fall.
• D) long-run average costs become negative.
• E) there is increasing marginal returns to increasing the firm's plant size.

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Definitions:

Positioning

A marketing strategy that focuses on how your customers think or talk about product and company relative to competitors.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.

Demographics

The statistical characteristics of human populations, such as age, gender, income, and education, used especially to identify markets.

Buyer Persona

A semi-fictional representation of the ideal customer based on market research and real data about existing customers, helping businesses to understand and cater to their target audience.