Why Is It Better for Firms to Keep Their Vision

question 9

Multiple Choice

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

• A) Customer-oriented visions tend to have a more short-range view of changing environments.
• B) Customer-oriented visions tend to have a more myopic view of changing environments.
• C) Customer-oriented visions tend to be more flexible when adapting to changing environments.
• D) Customer-oriented visions tend to be more stable when dealing with changing environments.

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Definitions:

Total Fixed Costs

The sum of all costs required to produce any good or service, that do not change with the volume of production.

Average Variable Costs

The total variable expenses of producing an item, divided by the quantity of items produced, accounting for costs that change with the production volume.

AVC Curve

The Average Variable Cost curve, in economics, represents how the variable cost per unit changes with the level of output.

AFC Curve

Average Fixed Costs curve; a graphical representation showing the average fixed costs of producing different levels of output, which typically decreases as output increases.