When Using Screening Criteria to Evaluate Opportunities

question 115

Multiple Choice

When using screening criteria to evaluate opportunities:

• A) Marketers must try to match opportunities to the firm's resources and objectives.
• B) Quantitative but not qualitative criteria should be considered.
• C) Opportunities that are not expected to be profitable after one year of implementation should always be dropped.
• D) The firm's weaknesses should be ignored.
• E) All of these are correct.

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing full adjustment to changes.

Average-Total-Cost Curve

A graphical representation in economics that shows how the average total cost of production changes as the quantity of output is altered.

Marginal Cost

The elevation in costs incurred by the creation of an additional unit of a good or service.

Long-Run Equilibrium

A state in which all factors of production and economic inputs can be fully adjusted, and all market forces are balanced.