Examlex

Solved

It's Usually a Good Idea for Firms to Try to Appeal

question 8

True/False

It's usually a good idea for firms to try to appeal to all potential buyers in a market, because customer variety leads to full capacity.


Definitions:

Market Price

The present rate at which a service or asset is available for purchase or sale in a specific market.

Marginal Revenue

The revenue increase resulting from the sale of one extra unit of a good or service.

Marginal Cost

Expenses accrued from the creation of one more product or service unit.

Average Total Cost

The total cost of production divided by the number of goods produced, indicating the cost on average of producing each unit of output.

Related Questions