One Way to Determine Whether a Company Has a Balanced

question 103

Multiple Choice

One way to determine whether a company has a balanced portfolio of products and,if not,what new product ideas are needed to offset the imbalance is to use:

• A) internal product development venture teams
• B) outside consultants
• C) marketing development departments
• D) status quo committees
• E) research ombudsmen

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input, assuming all other inputs remain constant.

Implicit Costs

The opportunity costs that arise from using resources that a company already owns for production, instead of earning revenue from these resources elsewhere.

Explicit Costs

Explicit costs refer to direct payments made to others in the course of running a business, such as wages, rent, and materials.

Variable Cost

Costs that change in proportion to the level of output or production activity.