Assuming a Firm Has Excess Capacity, Which of the Following

question 48

Multiple Choice

Assuming a firm has excess capacity, which of the following is NOT a reason that the firm would decide to reduce the normal price of a product or service in order to obtain a special order?

• A) The demand for the firm's products has dropped sharply in the last three months
• B) The firm is being offered a contract from a foreign distributor based in a country where normal selling prices are lower
• C) Market demand is strong and the firm is able to produce more products and still sell them at normal price
• D) The firm is able to sell its excess product to be retailed under a generic brand name, the product will sell at lower than normal price

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Definitions:

Theoretical Approaches

Refers to the various frameworks or methodologies used to analyze and interpret social phenomena.

Auguste Comte

A French philosopher known as the father of sociology, who advocated for the scientific study of society and the development of positivism.

French Revolution

A period of radical social and political upheaval in France that started in 1789 and led to the end of monarchy, the rise of Napoleon, and the reformation of the country's social structure.

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Rules and regulations established by a society that govern the behavior of its members and are enforced by legal institutions.