The Risk of Being the Lower-Cost Producer of a Product

question 28

Multiple Choice

The risk of being the lower-cost producer of a product or service is

• A) your business will fail more quickly.
• B) your business will generate excess cash and will incur higher taxes.
• C) your business will have problems keeping up with demand.
• D) customers will abandon your business when the competition offers a lower price.

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Definitions:

Fear

An emotional response to a perceived threat, characterized by increased alertness, anxiety, and a survival-oriented behavior.

Message

Any verbal, written, or signaled communication sent from one individual or group to another.

Jigsaw Classroom

An educational approach designed to minimize racial conflict among school children, promote better learning, improve student motivation, and increase enjoyment of the learning experience.

Prejudice

A preconceived opinion or judgement about an individual or group without sufficient knowledge, often involving negative or stereotypical beliefs.