The Production Concept Holds That ________

question 14

Multiple Choice

The production concept holds that ________.

• A)consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
• B)a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
• C)consumers will favor products that are available and highly affordable
• D)achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
• E)consumers will favor products that offer the most in quality, performance, and innovative features

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Definitions:

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, or insurance expenses.

Maximizing Profits

The process of increasing the difference between revenue and costs to achieve the highest possible financial gain.

Economic Profit

The surplus remaining after total costs are subtracted from total revenue, considering both explicit and implicit costs.

Zero Profit

A situation where a firm's total revenues are exactly equal to its total costs, leading to no net gain or loss.