Anon Corporation Is a Manufacturer of Widgets

question 37

Multiple Choice

Anon Corporation is a manufacturer of Widgets. Faced with increasing input material costs, the company is contemplating a price increase in the range of 15-20 percent. There are significant disagreements among senior personnel in the company about this move. Which of the following, if true, would strengthen the argument in favor of a price increase?

• A) Substitutes for Widgets are available in the market.
• B) The price of materials consumed along with Widgets has gone up.
• C) A change in the environment is likely to stimulate overall demand for Widgets.
• D) Competitors have announced that they intend to keep prices at current levels.
• E) Relaxation of import restrictions would lead to foreign competitors flooding the market.

---

Definitions:

Roles

The functions or parts played by individuals in a particular social or working situation.

Norms

Social rules or standards that govern the behavior of members within a group or society, often unwritten and learned through social interaction.

Group Development

Group development refers to the stages a group goes through as it progresses from formation to achieving effectiveness, traditionally divided into forming, storming, norming, performing, and adjourning stages.

Termination

The process of bringing an employment or contractual agreement to an end.