High Fixed Costs and Low Variable Costs Are Typical of Which

question 131

Multiple Choice

High fixed costs and low variable costs are typical of which approach(es) ?

• A) product and process
• B) process
• C) mass customization
• D) repetitive
• E) product and mass customization

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Definitions:

Substitute Product

A product or good that a consumer can use in place of another.

Substitutes

Products or services that can be used in place of each other.

Substitutes

Products or services that can be used in place of one another, where an increase in the price of one leads to an increased demand for the other.

Complements

Goods or services that are used together, where an increase in the consumption of one leads to an increase in the consumption of the other.