What Difficulty Did Kraft Face in Its Attempt to Enter

question 7

Multiple Choice

What difficulty did Kraft face in its attempt to enter the Hong Kong market?

• A)Existing distributors charged an exorbitant amount.
• B)Kraft had to create its own distributorship since an existing channel was not available.
• C)The Chinese government controlled the established channel.
• D)Kraft was blocked from entry by competitors.

---

Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service, used in economics to determine the optimum production level.

Output

The quantity of goods or services produced by a firm, sector, or economy.

Total Variable Costs (TVC)

TVC refer to the costs that vary directly with the level of output produced, including expenses such as materials and labor.

Marginal Cost

The cost of producing one additional unit of a product.