Firms That Want to Use Two or More Market Testing

question 2

Multiple Choice

Firms that want to use two or more market testing techniques are more likely to begin with a _____ method.

• A)minimarket
• B)pseudo sale
• C)direct marketing
• D)full sale

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Definitions:

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Production Function

The relationship between the quantity of inputs a firm uses and the quantity of output it produces.

Inputs

The resources, such as labor, materials, and capital, that are used in the production process to produce goods or services.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified time period.