Problem
Imagine you work at a firm that exports paper products. Given evidence that the volume of exports between a firm and its customers are independent (i.e., uncorrelated) from the total volume of exports, which of the following is the best strategy for growing export volumes?
a) Selling your current products to a new set of customers.
b) Selling more of the same product to your existing customers.
c) Engaging with wholesalers to sell to customers in the largest markets that are geographically close to where your manufacturing plants are located.