Which of the Following Is FALSE Regarding Description of a Product

question 37

Multiple Choice

Which of the following is FALSE regarding description of a product by specification?

• A) allows purchase from a number of sources
• B) developing specifications is an inexpensive process
• C) the minimum specifications set by the buyer are likely to become the maximum furnished by the supplier
• D) all the above
• E) b and c above.

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Definitions:

Maximize Profit

The process or strategy employed by businesses to increase their net earnings or reduce costs to the greatest extent possible.

Marginal Revenue Curve

A graph that shows the additional revenue a firm earns from selling one more unit of a good or service.

Upward Sloping

A characteristic of a graph or curve that rises from left to right, indicating a positive relationship between two variables.

Perfectly Competitive Firm

A business operating in a market where no single firm can influence the market price or market conditions, facing many competitors and selling identical products.