Which of the Following Should an Organization Do in Order

question 101

Multiple Choice

Which of the following should an organization do in order to obtain a competitive advantage through superior efficiency?

• A) Make products that are much more reliable than the products available in the market
• B) Reduce the number of inputs it requires to produce a given amount of outputs
• C) Use technology to make its product unique and different when compared to its rivals'
• D) Conduct surveys to determine whether a product will be successful in the market
• E) Create products that will attract customers and charge a premium price for those products

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Definitions:

Consumption Bundle

A combination of goods and services that a consumer chooses to consume within a given time period.

Income

Funds acquired regularly as earnings from employment or investment returns.

Substitution Effect

The change in consumption patterns due to a change in relative prices, holding the consumer's utility level constant.

Income Effect

The change in an individual's consumption choices resulting from a change in real income, due to changes in price.