Kraft Foods Recently Increased Its Advertising and Couponing to Its

question 276

Multiple Choice

Kraft Foods recently increased its advertising and couponing to its present cheese customers. It appears that Kraft is pursuing what kind of opportunity?

• A) Market penetration
• B) Product development
• C) Market development
• D) Mass marketing
• E) Diversification

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Definitions:

Marginal Social Cost

The cost to society of producing an additional unit of a good or service, including both the private costs and any external costs.

Marginal Social Benefits

The extra advantage to the entire community from using an additional unit of a product or service.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning their use by one individual does not reduce availability to others.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, taking into account both private costs and any externalities.