A Firm's "Relevant Market for Finding Opportunities" Should

question 99

Multiple Choice

A firm's "relevant market for finding opportunities" should:

• A) have no geographic boundaries.
• B) be bigger than the firm's present product-market-but not so big that the firm couldn't be an important competitor.
• C) be no larger than the firm's present product-market.
• D) usually be named in product-related terms.
• E) have no strong competitors.

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Definitions:

Marginal Utility

The surplus satisfaction or utility experienced by an individual from consuming an extra unit of a particular good or service.

Utility Maximization

The process by which individuals allocate their resources to maximize their satisfaction or utility.

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the additional satisfaction or utility that person gains from consuming one more unit of the product.

Additional Utils

The extra satisfaction or utility a consumer receives from consuming one more unit of a good or service.