Megatronics, Inc

question 18

Multiple Choice

Megatronics, Inc., obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers. This process is an example of:

• A) an assembly process.
• B) process manufacturing.
• C) synthetic production.
• D) continuous production.

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Definitions:

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive in the market.

Consumer Surplus

The gap between the price consumers are ready to offer for a good or service and the effective amount they spend on it.

Trade

The process of purchasing, vending, or trading products and services among individuals or nations.