If Technological Change Occurs in the Economy,the

question 93

Multiple Choice

If technological change occurs in the economy,the

• A) long-run aggregate supply curve will shift to the right.
• B) long-run aggregate supply curve will shift to the left.
• C) economy will move up along the long-run aggregate supply curve.
• D) economy will move down along the long-run aggregate supply curve.

Comprehend the significance of test marketing and different test market types.

Recognize how products are positioned and launched during commercialization.

Distinguish between product lines and product mixes, and their marketing implications.

Understand various innovation types and their impact on marketing strategies.

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Definitions:

Law of Diminishing Returns

The principle that adding more of one factor of production, while keeping others constant, will eventually yield lower per-unit returns.

Economic Profit

The surplus remaining after deducting both explicit and implicit costs from total revenues, emphasizing a firm's financial performance beyond just its accounting profit.

Accounting Profit

Accounting profit is the monetary gain calculated by subtracting total explicit costs from total revenue.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and therefore should not affect current and future business decisions.