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Julio Is Devising a Marketing Plan for Introducing His Company's

question 14

Multiple Choice

Julio is devising a marketing plan for introducing his company's products into a new market. Julio comes up with customized marketing strategies that cater to the unique needs of the new market. All his decisions involve risk and uncertainty as he is unaware of the conditions in the new market. The type of decision being made by Julio in the above situation is called a _____ decision.


Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen; the value of the next best alternative foregone.

Specialization

The process of focusing on and becoming expert in a particular subject or skill.

Production

The process of creating goods and services by combining labor, land, and capital to generate output.

Comparative Advantage

A person's, corporation's, or country's capability to manufacture a good or provide a service with a smaller opportunity cost than that of its competitors.

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