Asked by Brady Kelly on May 17, 2024
Verified
To determine the market potential for its product or service, a firm should use
A) GDP data.
B) unemployment data.
C) purchasing power parity data.
D) inflation data.
E) as many metrics as it can obtain.
Market Potential
The maximum total sales volume that could be achieved by all firms in a market for a specific product or service over a given period, under ideal conditions.
Purchasing Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach, aiming to assess their relative purchasing power.
GDP Data
Statistical information that reflects the market value of all final goods and services produced within a country in a given period, used to analyze economic health.
- Recognize the importance of GDP, purchasing power parity, and other metrics in determining market potential.
Verified Answer
OL
Oziel LeyvaMay 23, 2024
Final Answer :
E
Explanation :
To accurately determine the market potential for a product or service, it is important to consider multiple factors. GDP data can provide insight into the overall economic health of a country or region, but it may not accurately reflect the market potential for a specific product or service. Unemployment data can provide insight into consumer purchasing power, but it may not be the only factor to consider. Purchasing power parity data can provide insight into how much consumers can buy with their money in different countries, but it may not accurately reflect local market conditions. Inflation data can provide insight into the cost of goods and services, but it may not be the most important factor for determining market potential. Therefore, using as many metrics as possible can provide a more comprehensive understanding of the market potential for a product or service.
Learning Objectives
- Recognize the importance of GDP, purchasing power parity, and other metrics in determining market potential.