Variables Such as Location,the North American Industry Classification System (NAICS)code,and

question 73

Multiple Choice

Variables such as location,the North American Industry Classification System (NAICS) code,and type of buy are all examples of ways to

• A)differentiate products.
• B)forecast sales to a consumer market.
• C)segment an organizational market.
• D)segment a consumer market.
• E)promote NAFTA.

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Definitions:

Marginal-cost Curve

The marginal-cost curve depicts how the cost of producing one additional unit of a good or service varies as production increases.

Economies of Scale

The cost advantage that arises with increased output of a product, as costs are spread over a larger number of goods.

Wealth of Nations

A seminal book by Adam Smith that discusses economic principles and introduces the concept of the “invisible hand” guiding free markets.

Diseconomies of Scale

A situation where, as a firm's production scales up, the costs per unit increase, contrary to economies of scale.