Which of the Following Steps of the Market Screening Process

question 62

Multiple Choice

Which of the following steps of the market screening process involves the determination of a product's income elasticity?

• A) identification of basic appeal of a product
• B) measurement of market or site potential
• C) assessment of the national business environment
• D) selection of the market or site

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Definitions:

Market Demand

represents the total demand for a product or service within a market, determined by consumers' willingness and ability to buy at various prices.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Perfectly Competitive

Describes a market structure where numerous small firms compete against each other, and products are considered perfect substitutes.

Average Rate

A mathematical mean or typical value of a set of rates, often used in reference to interest rates, pricing, or other financial statistics.