A firm specializing in low-priced, lower-quality goods will most likely find a high-income market more attractive than a low-income one.

Question

Quizplus · Accepted Answer

A firm specializing in low-priced, lower-quality goods would find it more profitable to target a low-income market as they are price-sensitive and more likely to purchase such goods. A high-income market may not find the low-quality goods attractive and would opt for higher-quality products, even if they are more expensive.

A Firm Specializing in Low-Priced, Lower-Quality Goods Will Most Likely