Strategies That Alter a Product's Characteristic Such as Its Quality

question 227

Multiple Choice

Strategies that alter a product's characteristic such as its quality, performance, or appearance to increase the product's value to customers and increase sales are referred to as _________.

• A)market modification
• B)product modification
• C)product repositioning
• D)market-product strategy
• E)diversification

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or output.

Long-Run Average Total Cost

The average cost per unit of output where all inputs are considered variable, calculated over a period where firms can adjust all factors of production.

Short-Run Marginal Cost

The cost incurred by producing one additional unit of a product or service in the short run, where some factors are fixed.

Government Regulations

Laws and rules established by governmental agencies to control or modify economic behavior, protect consumers, or preserve natural resources.