Which of the Following Statements Is True About a Product

question 28

Multiple Choice

Which of the following statements is true about a product market?

• A) The cost of labor does not affect the product market because it is an insignificant part of an organization's costs.
• B) Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price.
• C) Organizations in a product market are competing to serve the same customers.
• D) Product markets typically place a lower limit on the pay an organization will offer its employees.
• E) Organizations in a product market must increase the cost of labor every quarter.

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Definitions:

Less Elastic Demand

Demand that does not significantly change in response to a price change, indicating consumers' necessity or commitment to purchasing the product.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage of the cost.

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in print, broadcast, or online media.

Super Bowl

An annual championship game of the National Football League (NFL), widely considered the pinnacle of American football.