Which of the Following Statements Is TRUE

question 104

Multiple Choice

Which of the following statements is TRUE?

• A) Entry and exit from an industry depend on the firm's market share.
• B) Fixed costs fall as firms produce more output, the so-called "spreading of the costs."
• C) High profits in an industry give entrepreneurs an incentive to enter that industry.
• D) A firm should enter an industry if average costs are less than producer surplus.

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Definitions:

Perceptual Map

A visual representation used in marketing to show customers' perceptions of a brand or product compared to competitors, based on criteria important to the customer.

Perceptual Map

A perceptual map is a visual tool used in marketing to depict the positions of different products or brands on a grid, based on important customer perceptions or preferences.

Position

The place a brand or product occupies in consumers' minds relative to competing offerings, based on attributes, benefits, values, and perceptions.

Target Segment

A specific group of consumers at whom a company aims its products and services, characterized by similar needs, preferences, or demographic profiles.