In This Question You Need to Match the Competitive Factor

question 56

Multiple Choice

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value low price then
The operation will need to excel at:

• A) Flexibility (volume and/or delivery)
• B) Quality
• C) Cost
• D) Flexibility (mix)
• E) Flexibility (products/service)
• F) Speed
• G) Dependability

---

Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Average Variable Cost

Average Variable Cost is the variable cost per unit of output, calculated by dividing total variable costs by total output, illustrating how variable costs change with output levels.

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a particular time period.

Marginal Product

The additional output generated by employing one more unit of a factor of production.