Despite the Pressures of Consumerism, Why Do Firms NOT Always

question 65

Multiple Choice

Despite the pressures of consumerism, why do firms NOT always give in to consumer demands?

• A) because consumers seldom know what they are talking about
• B) because in order to survive, firms must achieve reasonable profit objectives
• C) because consumers represent only a small segment of the total market
• D) because the demands of individual consumers represent little power in the marketplace

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Definitions:

Labor Demand Curves

Graphs showing the relationship between the wage rate and the quantity of labor that employers are willing to hire at that rate.

Competitive Labor Market

A market where there are many employers and job seekers, and the wages are determined by supply and demand for labor.

Marginal Revenue Product

The additional revenue a firm generates by employing one more unit of input, like labor, in the production of goods or services.

Marginal Product

The additional output that is produced by adding one more unit of a particular input while keeping other inputs constant.