You Can Go to Your Nearest Hallmark Card Store and Buy

question 118

Multiple Choice

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or, you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, that are sold at Barnes and Noble bookstores. This is an example of

• A)mass customization.
• B)organizational synergy.
• C)one product and multiple market segments.
• D)price discrimination.
• E)a Tiffany/Walmart strategy.

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Definitions:

Least-Cost Combination

is an economic principle that firms achieve by using the mix of inputs that minimize their costs while producing a given level of output.

MRP

Marginal Revenue Product; the additional revenue generated by employing one more unit of a resource or factor of production.

Resources

Assets, materials, and inputs needed for the production of goods and services, including natural resources, labor, and capital.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogenous products, and the absence of barriers to entry or exit, leading to optimal pricing and output.