When the Manufacturer of L'Oreal Shampoo Introduced Shampoos Designed Specifically

question 81

Multiple Choice

When the manufacturer of L'Oreal shampoo introduced shampoos designed specifically to appeal to preteens, which of the following best describes the product?

• A)not considered new, because the product was not discontinuous
• B)easily sold to many foreign countries using the same, popular L'Oreal brand name
• C)an example of inventing a product and then trying to create a need
• D)a new product because it was an improvement or revision of an existing product

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Definitions:

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a good or service.

Average Variable Cost

The per-unit variable cost, found by dividing the total variable expenses by the amount of output generated.

Marginal Cost

The cost of producing one additional unit of a good or service, which is used in decision-making about output levels.

Marginal Cost

Marginal Cost is the cost incurred by producing one additional unit of a product or service.