Which of the Following Is a Symptom of Product Line

question 149

Multiple Choice

Which of the following is a symptom of product line overextension?

• A) Overuse of standardized components
• B) Manufacturing or marketing resources are disproportionately allocated to slow-moving products
• C) Strong economy of scale
• D) Planned obsolescence of certain products
• E) All of the above.

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Definitions:

Acres

A unit of measurement used primarily in the U.S. to describe the size of land, equating to 43,560 square feet.

Economic Rents

Extra earnings or return above the normal expected return of an investment or economic activity.

Reallocation

The process of redistributing resources or assets from less productive uses to more productive ones in order to enhance efficiency and economic output.

Diminishing Returns

A rule that asserts when one input in the production process is augmented and the rest remain unchanged, the resultant extra production will ultimately diminish.