When a Firm Uses a Concentrated Targeting Strategy,it Can

question 10

Multiple Choice

When a firm uses a concentrated targeting strategy,it can

• A)view the total market as receptive to its product.
• B)offer a highly specialized marketing mix.
• C)reach customers in two or more segments that might otherwise be missed.
• D)avoid the danger of putting all resources in one micromarket.

---

Definitions:

Shut Down

A short-term decision by a firm to cease operations and production when the market price is below its variable costs, to minimize losses.

Economic Loss

A situation where total costs exceed total revenues, leading to a negative economic profit.

AVC

Average Variable Cost, an economic metric reflecting the variable costs (such as labor and materials) per unit of output.

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced, a critical factor in economic analysis of a company's efficiency.