A Quasi-Custom Product

question 53

Multiple Choice

A quasi-custom product

• A) gets its apparent customization from the combinations available from a small number of modules
• B) is often the output of repetitive focus facilities
• C) is a valid description of a fast food sandwich
• D) is only possible when the focus strategy of service productivity improvement is in use
• E) All but D are true.

---

Definitions:

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied changes by an infinite amount in response to any price change, depicted as a horizontal line on a graph.

Long-run Equilibrium

A state in which all factors of production are variable, leading to a situation where firms only earn normal profits and no incentives exist for entering or exiting the industry.

Short-run Equilibrium

The condition in which the quantity supplied equals the quantity demanded at a particular price level, but only over a short period.

Purely Competitive Firm

A company operating in a market where there are many buyers and sellers, with none being able to influence the market price significantly.