In the Long Run, Demand-Pull Inflation

question 28

Multiple Choice

In the long run, demand-pull inflation:

• A) Starts out with a shift in the AS curve, but no shift of the AD curve
• B) Starts out with a rightward shift in the AD curve, followed by a resulting leftward shift of the short-run AS curve
• C) Starts out with a leftward shift in the AD curve, followed by a resulting rightward shift of the short-run AS curve
• D) Involves a shift of the AD curve only, with no shift of the AS curve

Identify the implications of market segmentation for marketing strategies.

Grasp the importance of customer service as a differentiator in competitive markets as exemplified by Zappos.

Understand product differentiation and its strategic implications.

Relate market segmentation and product differentiation strategies to real-world business examples.

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Definitions:

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.

Marginal Revenue

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

Positive Profit

Positive profit occurs when a business's total revenues exceed its total costs, indicating financial gain from its operations.

Marginal Costs

Relates to the additional expenses faced when a business decides to increase its output or product quantity by one more unit.