Globalization Opens the Doors for Companies to Attract New Customers

question 26

Multiple Choice

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

• A) different income levels.
• B) low income levels.
• C) high income levels.
• D) steady income levels.

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Definitions:

Consumer Surplus

An economic measure of consumer benefit, calculated by analyzing the difference between what consumers are prepared to pay for a good or service relative to the market price.

Deadweight Loss

An economic inefficiency that occurs when a market is not in competitive equilibrium, leading to a loss of economic value.

Price Discriminate

A pricing strategy where the same product or service is sold at different prices to different customers, based on their willingness to pay.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition.