The Founders of Apple Avoided the Classic Pitfalls in Market

question 9

Multiple Choice

The founders of Apple avoided the classic pitfalls in market segmentation by

• A) becoming big.
• B) not imitating their competitors.
• C) relying on the easiest segmentation methods.
• D) forgetting that segments change.
• E) always using the same segmentation approach.

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Definitions:

Capital

Economic resources that are used to create goods and services, such as buildings, machinery, and equipment.

Accounting Profit

Total revenue minus total explicit cost

Economic Profit

The distinction in the amount between total sales and all costs, inclusive of apparent and implied expenses.

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service, essential for establishing the best production quantities.