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Cindy's Cosmetics Continues to Offer the Same High Quality Beauty

question 122

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Cindy's Cosmetics continues to offer the same high quality beauty products that it has for the last 10 years. The company is successful in its market segment and has no plans for change in the near future. The company is pursuing which type of strategy?


Definitions:

Variable Inputs

Resources or factors of production that can be adjusted in the short run to meet changes in demand.

Diminishing Returns

An economic concept indicating that as more investment is made in a particular area, the rate of profit from that investment, after a certain point, starts to decline.

Marginal Product

The additional output produced by using one more unit of a particular input, while holding other inputs constant.

Marginal Product

The increase in output that results from employing one additional unit of a factor of production, while holding other factors constant.

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