When a Firm Already Has Significant Value Built into Its

question 18

Multiple Choice

When a firm already has significant value built into its product offering,increasing value by a relatively small amount requires significant additional costs.The converse also holds,when a firm already has a low-cost structure,it has to give up a lot of value in its product offering to get additional cost reductions.These are the implications relate to the concept of _____.

• A)diminishing returns
• B)marginal utility
• C)surplus value
• D)production possibility

---

Definitions:

Feedback

Information provided about the results of an action or process, used as a basis for improvement.

Buying Center

The group of individuals within an organization who are involved in making a purchase decision.

Influencer

An individual with a significant following on social media or other platforms, whose opinions and actions can affect the buying habits or views of their audience.

Audio Equipment

Devices and systems used for producing, recording, and reproducing sound, including microphones, speakers, and amplifiers.