Multiple Choice
In economics, which term best describes a situation where there is a possibility of experiencing a loss, no change, or a gain?
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0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
A firm's decision to identify and develop new markets for existing products is a ________ strategy.
A
market development
B
cost leadership
C
product development
D
diversification
Verified step by step guidance1
Understand the definitions of the four common growth strategies in microeconomics and business: market development, cost leadership, product development, and diversification.
Market development strategy involves expanding into new markets with existing products, aiming to increase sales by reaching new customer segments or geographic areas.
Cost leadership strategy focuses on becoming the lowest-cost producer in the industry to gain competitive advantage, not necessarily related to new markets or products.
Product development strategy means creating new products to serve existing markets, emphasizing innovation or product improvement rather than market expansion.
Diversification strategy involves entering new markets with new products, which is broader than just developing new markets for existing products.
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