Company sales divided by the total sales of all firms for a specified product-market determines the _____ of a particular firm.

Question

Quizplus · Accepted Answer

Market share is the portion or percentage of total sales of a particular product or service that a company holds. It is calculated by dividing the company's sales by the total sales of the product-market. Therefore, option D is the correct answer. A is incorrect as market potential is the maximum amount of sales that can be achieved by all the firms in a particular market. B is incorrect as absolute threshold is the lowest level at which an individual can detect a stimulus. C is incorrect as it is an incomplete answer and needs the term "market position" to be added. Relative market position refers to how a company ranks and compares to its competitors in the same product-market.

Company Sales Divided by the Total Sales of All Firms