Bubble-Up, Inc., is a small manufacturer of educational toys for children under age 10. It has co-existed with three other competitors in the educational toy industry for over 20 years, each of them maintaining a stable market share. There is a wide-spread rumor that Mega-Toy, Inc., the market leader in the broad children's toy market, has decided to target educational toys. Which of these statements is most likely TRUE? c. Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy.

Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy.

Explanation:

Bubble UP's segment of choice is the educational toys segment and they would have specialised in this segment gaining competitive advantage over other forms that are more general in market segmentation. They have operated in this segment for over 20 years.

Bubble Up will be able to dedicate more resources to innovations in the educational toys segment, since this is their primary market. There will also be less bureaucratic delays as management will quickly approve innovation that will strengthen their position in this market segment.

Mega Toy on the other hand is a market leader in broad children's toys. They want to target educational toys market segment.

Due to their large size and wide range of products, they will be unable to dedicate as much resources to innovate in this market segment compared to Bubble Up.

answer; is usually (less than) the socially optimal level of consumption;