When a Firm Tries to Increase Sales by Selling Its

question 111

Multiple Choice

When a firm tries to increase sales by selling its present products in new markets, this is called:

• A) product development.
• B) diversification.
• C) market penetration.
• D) mass marketing.
• E) market development.

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Definitions:

Output

The sum of all products or services generated by a company, sector, or economic system in a specified timeframe.

Zero Revenues

A situation where a business or organization does not generate any income from its activities or operations.

Profit-Maximizing Monopolist

A monopolist's strategy of setting a price and production level where marginal cost equals marginal revenue to achieve the highest possible profit.

Price-Elastic

A characteristic of goods or services for which demand significantly changes with small changes in price.