Sosuke's Company Has Low Efficiency and Low Effectiveness

question 29

Multiple Choice

Sosuke's company has low efficiency and low effectiveness. Considering this, which of the following applies?

• A)Sosuke produces easy-to-use copy machines, thus increasing demand for them, but uses cheap resources that often makes them break down.
• B)Sosuke produces easy-to-use copy machines, thus increasing demand for them, and uses quality resources that makes them durable.
• C)Sosuke produces copy machines that are complicated to use, thus lowering demand for them, and uses cheap resources that often makes them break down.
• D)Sosuke produces copy machines that are complicated to use, thus lowering demand for them, but uses quality resources that makes them durable.

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Definitions:

Profit Maximization

The process of determining the best output and pricing levels to achieve the most profit.

Production Function

An equation in mathematics that outlines how inputs correlate with the greatest output achievable from those inputs.

Supply Function

A mathematical relationship that describes the quantity of a good or service that producers are willing to sell at each possible price.

Long-Run Total Cost Function

An economic concept that describes how the total cost of production changes in response to changes in output over the long term, when all input factors can be varied.