Informative Advertising

question 42

Multiple Choice

Informative advertising:

• A) degrades the competitive process by increasing the costs of firms.
• B) degrades the competitive process by confusing the consumer with information about prices and new products.
• C) improves the competitive process by educating the consumer about prices and new products.
• D) improves the competitive process by making all products appear to be the same.

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Definitions:

MRP Plan

Material Requirements Planning; a system for calculating materials and scheduling production to meet demand.

Gross Requirements

The total demand for an item, inclusive of direct and indirect requirements, before any adjustments for on-hand inventory or scheduled receipts.

Lot-For-Lot

A production strategy where the quantity to be produced is based on the exact demand, avoiding excess production.

Setup Cost

The expenses incurred to prepare or set up equipment and processes for production or manufacturing, necessary for each production run.