Diminishing returns is most applicable when a firm
A) has high sales penetration.
B) appeals to heavy users.
C) has low brand loyalty.
D) has high sales potential.

Question

Quizplus · Accepted Answer

Diminishing returns occur when a firm has high sales penetration because it becomes increasingly difficult to gain additional sales or market share once a large portion of the market is already captured.

Diminishing Returns Is Most Applicable When a Firm