When Marion Convinced a Customer to Replace His Old Pondmaster

question 28

Multiple Choice

When Marion convinced a customer to replace his old Pondmaster 1000 aquarium filter with the new and improved Pondmaster 1500,she was engaging in:

• A) cross-selling.
• B) upgrading.
• C) repositioning.
• D) full-line selling.
• E) incremental selling.

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Definitions:

Market Power

The ability of a firm or group of firms to control prices or output in a market, often leading to reduced competition.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and opportunity costs.

Monopolistically Competitive

Describes a market structure in which many firms sell products that are similar but not identical, allowing for some degree of market power.

Long Run

A period in which all factors of production and costs are variable, allowing firms the flexibility to adjust all inputs.