Spokes Bikes Has 18 Different Bicycle Models That Can Be

question 220

Multiple Choice

Spokes Bikes has 18 different bicycle models that can be created in over 2 million combinations. Each combination is designed to fit the needs of a specific customer. Therefore, the customer chooses the model, size, color, and design they want. An analysis of this company's operation would indicate that it uses

• A) lean manufacturing.
• B) flexible production.
• C) mass customization.
• D) continuous production.

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Definitions:

Marginal Revenue Product (MRP)

The additional revenue generated by employing one more unit of a resource or factor of production.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, holding all other factors constant.

Additional Units

Incremental quantities of a product or resource, often discussed in contexts like production, costs, and benefits analyses.

Marginal Physical Product

It is the additional output generated by employing one more unit of a specific input, keeping other inputs constant.