Identify the INCORRECT Statement About Approaches to Market-Oriented Strategy Planning

question 88

Multiple Choice

Identify the INCORRECT statement about approaches to market-oriented strategy planning.

• A) It's usually safer to be a combiner.
• B) Cost considerations encourage aggregating.
• C) Demand considerations encourage less aggregating.
• D) The approach a firm uses depends in part on the firm's resources.
• E) Generally, it is better to try and satisfy some customers very well instead of many just fairly well.

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Definitions:

Comparative Advantage

An individual's, a business's, or a nation's potential to produce a service or good at an opportunity cost that is inferior to that of its competition.

Production Possibilities

Production possibilities refer to the different combinations of goods and services that an economy can produce given its available resources and technology.

Specialization

The process of focusing effort and resources on a limited number of activities to increase efficiency and productivity.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level, holding all other factors constant.