In the Long Run in a Perfectly Competitive Market

question 2

Multiple Choice

In the long run in a perfectly competitive market:

• A) firms earn zero economic profits.
• B) firms operate at an efficient scale.
• C) supply is perfectly elastic when all firms have the same cost structure.
• D) All of these are true.

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Definitions:

Global Segmentation

The process of dividing the world market into distinct subsets of customers who share common needs or characteristics, allowing for targeted marketing strategies.

Targeting

The process of identifying and focusing on specific segments of the market that a company views as potential customers for its products or services.

Positioning

In marketing, positioning refers to the technique by which marketers try to create an image or identity for a product, brand, or company in the perception of the target market.

Consultative Buying Centers

Groups within organizations that use a collaborative approach to purchasing, where members consult each other and consider different perspectives to make informed decisions.