Consumer Advocates Believe the Practice of Downsizing by Consumer Products

question 340

Multiple Choice

Consumer advocates believe the practice of downsizing by consumer products firms has resulted in

• A) lower product prices for consumers because of lower labor, raw material, and packaging costs.
• B) a greener environment due to the reduction in packaging, thereby reducing the amount of waste entering landfills.
• C) fewer product choices for consumers that led to rising prices.
• D) low prices in response to the psychological barriers consumers have for change.
• E) a subtle, deceptive, yet legal practice of disguising a price increase.

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Definitions:

Profit Maximization

The strategy a business uses to ascertain the pricing and amount of production that maximizes profitability.

Workers

Individuals engaged in any form of economic activity to earn a wage or salary.

Wage

Compensation received by employees for their labor or services, often expressed in terms of hourly, daily, or annual earnings.

Marginal Product

The additional output that is produced as a result of using one more unit of a particular input, such as labor or capital, while keeping other inputs constant.