Executives at Apex Decided to Use a Production Orientation in the Firm's

question 56

Multiple Choice

Executives at Apex decided to use a production orientation in the firm's international marketing efforts.Which of the following statements best supports this decision?

• A) Top management at Apex is committed to the concept of social responsibility.
• B) Apex is willing to alter its products to fit mass-market needs in foreign countries offering growth potential.
• C) Apex will produce in each country where it sells.
• D) Apex will aim sales at foreign-market segments that resemble segments to which it aims domestically.

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Definitions:

AVC

Average variable cost; the total variable costs divided by the quantity of output produced, illustrating cost per unit.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor costs.

Economic Profit

Economic profit is the difference between total revenue and total costs, including both explicit and implicit costs, measuring the profit that exceeds the next best alternative use of resources.