Which of the Following Statements Concerning Small-Lot Production Is Not

question 32

Multiple Choice

Which of the following statements concerning small-lot production is not true?

• A) Small-lot production requires less space.
• B) Small-lot production requires more capital investment.
• C) Small-lot production simplifies transportation between workstations.
• D) Small-lot production allows processes to be moved closer together.

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Definitions:

Customary Pricing

Pricing strategy based on what is traditionally expected or accepted within a specific market or industry.

Loss-leader Pricing

A strategy where a product is sold at a loss to attract customers in hopes they will make additional purchases.

Below-market Pricing

Below-market pricing is a strategy where goods or services are sold at a price lower than the prevailing market rate to attract customers and increase market share.

Magnet Pricing

A strategy used by retailers to attract customers by advertising very low prices on a few items with the expectation that once customers are in the store, they will purchase additional items.