If the Operation Is Low Cost and High Utilisation and the Market

question 16

Multiple Choice

If the operation is low cost and high utilisation and the market requirements are for high variety and many changes, that is:

• A) Match
• B) Mismatch

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Definitions:

Fourth Unit

In specific contexts, this could refer to the additional unit of a product or service in economic terms, implying the concept of incremental or marginal analysis.

Peak Efficiency

The highest level of operational effectiveness where an entity or process operates at maximum capacity with minimal waste and expense.

Firm

An enterprise like a corporation, partnership, or sole proprietorship involved in commercial, industrial, or professional operations.

AFC

stands for Average Fixed Cost, which is the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity of output produced.