When Consumers Are Making Do with Less Expensive Products and Shopping

question 101

Multiple Choice

When consumers are making do with less expensive products and shopping more selectively, manufacturers and retailers must focus on the ____ of their products.

• A)price
• B)quality
• C)availability
• D)value
• E)image

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Definitions:

Idle Capacity

Unused production capacity in a business, where the facilities, equipment, or workforce are not being fully utilized.

Underutilized Labor

A situation where employees are not working at their full capacity or skill level, leading to inefficiency and increased labor costs.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choice.

Variable Conversion Cost

Costs that change with the level of production output, including elements like direct labor and utility expenses related to manufacturing.