To Develop a Lean Manufacturing System a Firm Might Do

question 40

Multiple Choice

To develop a lean manufacturing system a firm might do which of the following?

• A) Eliminate anything that does not add value for the customer.
• B) Standardize product configurations.
• C) Process design with product design.
• D) Adopt a kaizen philosophy.
• E) Implement top-down management controls.

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Definitions:

Marginal Cost

The growth in aggregate expenditure brought about by generating an extra unit of a product or service.

Economic Profit

The difference between total revenue and total costs, where costs include both explicit and implicit costs.

Competitive Firm

A company that operates in a market where it must take the prevailing market price as given because the firm's individual sales do not significantly affect the market price.

Total Revenue

The total income generated by a firm from selling its goods or services, calculated as the price per unit times the number of units sold.