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Refer to the Scenario Below to Answer the Following Questions

question 49

Multiple Choice

Refer to the scenario below to answer the following questions. Alden Manufacturing produces small kitchen appliances blenders, hand mixers, and electric skillets under the brand name First Generation. Alden attempts to target newlyweds and first-time home buyers with this brand. Considering that most young households have limited financial resources, Alden has used break-even analysis and analysis of the demand curve to determine pricing. "In doing this," Milt Alden stated, "we have better control over keeping price right in line with customers." Alden manufactures a three-speed blender, its top seller, and a five-speed blender. The hand mixers are manufactured in two styles a small hand-held mixer with two rotating beaters and a similar style that comes with an optional stand and attached mixing bowl. Alden's temperature-controlled skillets are manufactured in one style with three color options. "Our product offerings are narrower," Milt Alden added, "but our line workers know each product like the back of their hands. This allows us to produce superior products while holding our prices low."
-Milt Alden says that his line workers "know each product like the back of their hands," and that this knowledge helps the company keep its prices low. This indicates that Alden Manufacturing most likely uses which of the following strategies?

Definitions:

Diseconomies of Scale

A phenomenon where production costs per unit increase as a firm's output increases, often due to inefficiencies that arise when companies become too large.

Smaller Percentage Increase

Refers to a rate of increase that is less significant or lower in proportion compared to another.

Average Costs

The cost per unit of output, calculated by dividing the total cost of production by the number of units produced.

Constant-Cost Industry

An industry in which the cost per unit does not change as the industry's overall output changes.