In Terms of the Global Marketplace, There Are Three Primary

question 185

Multiple Choice

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is

• A) the firm's financial capacity to take risks.
• B) the willingness and ability to embrace diversity and cultural differences.
• C) the firm's orientation toward and strategy for global markets and marketing.
• D) the relative position of the product or service in terms of its life cycle.
• E) the relative size of the firm both in financial terms and in production capacity.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the average cost per unit of output.

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the quantity of output produced.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, representing the per-unit cost.

Marginal Cost

Marginal cost refers to the increase or decrease in the total cost when the quantity produced is incremented by one unit.