Suppose That Kohler Is Deciding Whether to Create a Line

question 111

Multiple Choice

Suppose that Kohler is deciding whether to create a line of self-installed kitchen and bathroom fixtures.In what way would Kohler's definition of its mission lead it to make a different decision than it would make if it had no defined mission and merely attempted to follow widely accepted business practices?

• A) Kohler would focus on the customers' underlying needs instead of their demand for existing Kohler products.
• B) Kohler would pursue opportunities that are very different from the areas in which it has competed successfully.
• C) Kohler would alter its conception of "gracious living" to include activities such as installing kitchen and bathroom fixtures.
• D) Kohler would not produce the new line of fixtures if it determined that doing so would not fit with its definition of "gracious living."
• E) Kohler would create the new line of fixtures if the expected profits were higher than products that could more reasonably fit under its definition of "gracious living."

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Definitions:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Inelastic

Describing a situation where the demand for a good or service is relatively unaffected by changes in its price.

Essential Consumption

The purchase and use of goods and services that are considered necessary for basic living and well-being.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.