Rather Than Attempting to Serve the Total Market,the Small Firm

question 65

Multiple Choice

Rather than attempting to serve the total market,the small firm pursuing a ________ strategy specializes in serving a specific target segment.

• A)cost leadership
• B)differentiation
• C)focus
• D)head-to-head

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Definitions:

Competitive Price-Taker

A rephrased scenario where businesses in competitive markets accept the prevailing market price as given because they have no power to influence it.

Profit

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Marginal Cost

The extra expense resulting from the manufacture of an additional unit of a product or service.