Which of the Following Statements Describes Past Processes That Existed

question 261

Multiple Choice

Which of the following statements describes past processes that existed in manufacturing that negatively affected a firm's competitive advantage?

• A) Companies tended to produce a large quantity of the same product at a very low cost.
• B) Companies required their suppliers to only deliver the amount of good needed for a short-term production run.
• C) Companies changed their equipment too often, which created lost time on the job.
• D) Companies refused to train employees in technology and on machinery.

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Definitions:

Incentive

Something that motivates or encourages an individual or entity to act in a certain way.

Costs And Benefits

This is an analysis approach that compares the potential outcomes and implications, in terms of costs and benefits, of an action or decision.

Marginal Social Benefit

The extra advantage to society that comes from using an additional unit of a product or service.

Marginal Social Cost

The total cost to society of producing one additional unit of a good, including both private costs and externalities.