The Demand Curve Facing a Firm Is Likely to Be

question 187

Multiple Choice

The demand curve facing a firm is likely to be relatively elastic if _____

• A)the firm has few competing firms.
• B)the firm sells more differentiated products.
• C)there are many substitutes for its product.
• D)the firm is a price maker.
• E)the firm has control over the supply of a key resource.

Recognize the importance of satisfying consumer needs through effective marketing strategies.

Distinguish between a market and a target market in a marketing context.

Identify effective communication strategies for reaching target markets.

Understand the concept of the market being composed of people with both desire and ability to buy.

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Definitions:

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two goods, given a set of inputs resources, and technology, illustrating the trade-offs in production choices.

Opportunity Cost

Forgoing possible benefits from other options by selecting a particular one.

Straight Lines

Lines in a geometric space that have the same direction throughout and no curvature.

Foreign Trade

The exchange of goods and services between countries.