Organizations That Combine Raw Materials, Machinery, and Labor to Produce

question 92

Multiple Choice

Organizations that combine raw materials, machinery, and labor to produce goods are called

• A) manufacturing businesses.
• B) service businesses.
• C) merchandisers.
• D) market intermediaries.
• E) processors.

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Definitions:

Efficient Output

The level of production at which a firm or economy can produce goods at the lowest average cost, maximizing resource use without waste.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Price Discrimination

A pricing strategy where the same product or service is sold at different prices to different customers, based on factors like demand, market conditions, or purchasing power.

Segments

Different parts or sections of a market, divided based on characteristics like demographics, needs, or preferences.