When a Firm Operates in Multiple Geographic Markets Simultaneously It

question 63

True/False

When a firm operates in multiple geographic markets simultaneously it is said to be implementing a product diversification strategy.

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Definitions:

Negatively Sloped

Refers to a downward inclination of a line or curve on a graph, indicating an inverse relationship between two variables.

Total Surplus

The total net benefit to society from the production and consumption of a good, equal to the sum of consumer surplus and producer surplus.

Consumer Surplus

The deviation between the full cost that consumers are willing and are financially suitable to pay for a product or service, and the cost they ultimately pay.

Individual Consumer Surplus

The net gain to an individual buyer from the purchase of a good; equal to the difference between the buyer’s willingness to pay and the price paid.