What Answers the Question,"What Business Are We in and Where

question 2

Multiple Choice

What answers the question,"What business are we in and where are we going?"

• A) the strategic plan
• B) the situation analysis
• C) the market strategy
• D) the mission statement

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Definitions:

Average Revenue

The total revenue divided by the quantity sold, representing the amount of revenue generated per unit of output sold.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.

Natural Monopoly

A market situation where due to high fixed costs or unique production processes, one provider can supply a product or service more efficiently than multiple competitors.

Average Total Cost

The total cost of production divided by the total output or quantity of goods produced.