The Change in Cell-Phone Model Life Cycles from 2 Years

question 131

Multiple Choice

The change in cell-phone model life cycles from 2 years to under 6 months is the result of

• A) time-based competition.
• B) design for manufacturability.
• C) life cycle assessment.
• D) value analysis.
• E) environmental concern.

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Definitions:

Short Run

A period in which at least one factor of production is fixed and cannot be varied by the firm.

Long Run

A period sufficient for all inputs in production to be adjusted, including physical capital and labor.

Allocative Efficiency

Allocative Efficiency occurs when resources are distributed in a way that maximizes the net benefit to society, ensuring that the right goods are produced to meet consumer preferences.

Productive Efficiency

A situation where an economy or a production process is operating in such a way that it could not produce more of one good without producing less of another.