Cream Cups Bakes Cakes in Several Varieties Dedicated to Special

question 45

Multiple Choice

Cream Cups bakes cakes in several varieties dedicated to special occasions. It also allows its customers to personalize the cakes according to their personal preferences. This is an example of:

• A) learning effects.
• B) a just-in-time (JIT) inventory system.
• C) customer defection.
• D) mass customization.
• E) diseconomies of scale.

---

Definitions:

Households Incomes

Refers to the total amount of money earned or received by all members of a household, encompassing wages, salaries, benefits, and other income sources.

Circular Flow Model

An economic model illustrating the continuous flow of goods, services, and money between households and businesses in an economy.

Public Agency

An organization operated by the government to manage specific functions or provide services such as education, health, or transportation.

Business Structure

The legal and organizational framework chosen by a company that defines its operations, liabilities, responsibilities, and regulatory obligations.