Determining Where a Firm Should Compete Starts with Deciding Who

question 128

True/False

Determining where a firm should compete starts with deciding who the firm's current or potential customers are and what are their needs.

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Definitions:

Technical Substitution

The process of replacing one combination of inputs or technologies with another to produce the same level of output.

Inputs

Elements utilized in creating products, covering workers, funds, raw materials, and electricity.

Isoquant

A curve depicting all combinations of inputs that result in the production of the same level of output.

Production Function

A mathematical model representing the relationship between the inputs used in production and the output of goods or services.