The Advantages of Standardization Do Not Include Which of the Following

question 78

Multiple Choice

The advantages of standardization do not include which of the following?

• A)Extending the product life cycle
• B)Fewer parts to deal with in inventory
• C)Reduced time and cost to train employees
• D)Purchasing is more routine
• E)Products are made in large quantities

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a product or service, typically set to protect consumers.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive, usually measured above the supply curve up to the price level.

Price Ceiling

A legally established maximum price for a good or service, beyond which it cannot be sold.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing their gained utility.