In Asia,Procter & Gamble (P&G)discovered That Consumers Like to Experiment

question 126

Multiple Choice

In Asia,Procter & Gamble (P&G) discovered that consumers like to experiment with different brands of shampoos and shy away from the family-size bottles so popular with Americans.Now it sells single-use sachets of shampoo in Asia.P&G responded to _____ factors when it changed its Asian packaging.

• A) demographic
• B) competitive
• C) technological
• D) social
• E) component lifestyle

Recognize conditions for long-run equilibrium in constant cost industries.

Analyze the implications of long-run average cost curves on industry structure and firm size.

Understand the economic reasoning behind U-shaped long-run average cost curves.

Interpret how economies of scale affect industry dynamics and cost structures.

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Definitions:

Flexible Budgeting

An approach in budgeting that allows for adjusting budget allocations based on varying levels of activity or output.

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.

Favorable Variance

A financial term indicating that actual costs were lower or revenues were higher than planned.

Budgeted Amount

The projected costs or revenues allocated to a specific activity or period, based on estimates.