Which of the following factors must you judge to estimate the market potential for a product? (A)…
(A), (B) and (C) only are needed. Market potential is the total demand a product can command, so the entrepreneur judges the demand that exists now, the demand that can be…
Choose your answer
Which of the following factors must you judge to estimate the market potential for a product?
(A) Present market demand
(B) Export market demand
(C) Future market demand
(D) Labour demand
(E) Retailers' consumption preferences
Answer and explanation
Correct answer C
(A), (B) and (C) only are needed. Market potential is the total demand a product can command, so the entrepreneur judges the demand that exists now, the demand that can be won in export markets and the demand expected in future. Labour demand concerns the firm's need for workers, an input, and retailers' own consumption preferences do not measure the demand of the final market, so sets containing either are wrong.
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Common Management Admission Test (CMAT)