By Adding New Product Lines Beyond Its Core Business of Computer

question 84

Multiple Choice

By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by

• A)keeping up in a market where sales come mostly from new products.
• B)satisfying the changing needs of the technological research staff.
• C)avoiding market saturation from products that have just been introduced to the market.
• D)creating diversification and reducing risk.
• E)spreading out production costs.

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Definitions:

Unit of Output

The basic measure of productivity or product which is generated by a production process, operation, or project.

Competitive Market Economy

A system where market forces govern the production, distribution, and pricing of goods and services, featuring many buyers and sellers and free entry and exit from the market.

Least-Cost

A principle or method of minimizing the costs of production or operation while achieving the desired output or quality.

Production Technique

Methods or processes used in the creation of goods or services, often focusing on increasing efficiency or quality.