Northeast Woodworking Is a Small Business Run by Skilled Workers

question 8

Multiple Choice

Northeast Woodworking is a small business run by skilled workers who produce customized and hand-manufactured furniture. This company engages in ________ production.

• A)mass
• B)flow
• C)crafts
• D)series
• E)mechanized

---

Definitions:

Long-run Equilibrium

A market condition where all factors of production and inputs can be varied, allowing firms to enter or exit the market, ultimately resulting in no economic profit for any firm.

Demand

The amount of a product or service that buyers are ready and able to buy at different price levels over a certain timeframe.

Cost Function

A mathematical expression or equation that defines the cost of production as a function of output or other variables.

Long-run Equilibrium

A situation in which, over the long term, supply and demand are balanced, all firms are operating at an optimal scale, and economic forces are in balance.