When a Producer Has the Ability to Produce a Good

question 136

Multiple Choice

When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:

• A) has an absolute advantage at producing that good.
• B) has a comparative advantage at producing that good.
• C) has no reason to trade with others.
• D) is efficient in production.

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Definitions:

Product Differentiation

A marketing strategy that involves distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Pull Phase

A stage in supply chain management where production and distribution are driven by actual demand rather than forecasted demand.

Postponement

A strategy of delaying the final production or distribution of a product until customer orders are received to reduce inventory costs and increase customization.

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.