When a Falloff in Usage of a Product by Some

question 59

Multiple Choice

When a falloff in usage of a product by some consumers causes others to stop purchasing the item there is

• A) price leadership.
• B) negative-sum game.
• C) positive market feedback.
• D) negative market feedback.

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Definitions:

Variable Manufacturing Overhead

Costs in manufacturing that vary with operational output, such as indirect materials, utilities, and other expenses that increase with production volume.

Fixed Manufacturing Overhead

Regular, consistent costs associated with operating a manufacturing facility that do not vary with the level of production, such as salaries and rent.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, contributing to covering fixed costs and generating profit.

Production Constraint

A limitation or bottleneck in a manufacturing process that affects the overall output.