Which of the Following Are Examples of Erosion

question 44

Multiple Choice

Which of the following are examples of erosion?
I. The loss of sales due to increased competition in the product market
II. The loss of sales because your chief competitor just opened a store across the street from your store
III. The loss of sales due to a new product which you recently introduced
IV. The loss of sales due to a new product recently introduced by your competitor

• A) III only
• B) III and IV only
• C) I, III and IV only
• D) II and IV only
• E) I, II, III, and IV

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Definitions:

Function

In mathematics, a relation or expression involving one or more variables, where each input value yields one and only one output value.

Production Function

A mathematical model that describes the relationship between the quantity of output produced and the quantities of inputs used in production.

Returns To Scale

An economic concept describing how the output changes in response to a proportional change in all input factors.

Marginal Product

The additional output that is produced by using one more unit of a particular input, holding all other inputs constant.