Reduction in Production Cost Results in ________

question 85

Multiple Choice

Reduction in production cost results in ________.

• A)better customer service
• B)lower shareholder value
• C)increased profitability
• D)increased competition

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Definitions:

Full Employment

A condition in the economy where all potential labor forces are utilized in the most economically effective manner.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Aggregate Demand

The sum total of all economic needs for goods and services, appraised at a constant overall price level in a stated period.

Excess Capacity

A situation where a company or economy can produce more goods or services than currently demanded, leading to unused resources or capacity.