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In which example has an entrepreneur correctly identified a market opportunity?

Answer and explanation

Correct answer: Starting a service after noticing demand for healthy lunch near schools

A market opportunity exists when a group of customers has a need that a product or service can reasonably meet. Good opportunity recognition requires observing the likely customers, understanding their demand, and considering whether the proposed service can be supplied safely and affordably. Location is also important because it connects the service with the people who may buy it.

Option A is correct because noticing demand for healthy lunches near schools links a specific need with a clear customer group and place. The entrepreneur can then study quantity, price, competition, and resources before starting. Investing without demand, increasing production without customer discussion, or hiding resources does not show reliable market understanding and can lead to waste or failure.

Related tags

Market OpportunityHealthy LunchLocal Demand

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