In the United States,the Basic Objective of the Market-Directed Economic

question 27

Multiple Choice

In the United States,the basic objective of the market-directed economic system has been to

• A)ensure the survival of business firms.
• B)find a reasonable balance between consumer satisfaction and business profits.
• C)reduce the cost of marketing activities.
• D)satisfy consumer needs as the consumers themselves see them.
• E)satisfy consumer needs as seen by marketing managers.

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Definitions:

Certified Public Accountants

Professionals who have passed the CPA examination and met all other state certification requirements, authorized to provide accounting services to the public.

Diseconomies of Scale

A situation where, as a firm increases its production, the costs per unit increase.

Constant Returns to Scale

A situation in which increasing the amount of inputs results in a proportional increase in outputs.

Diseconomies of Scale

A situation in which production costs increase as a firm’s output increases, leading to decreased efficiency.