Which of the Following Statements Is True of Industrial Products

question 91

Multiple Choice

Which of the following statements is true of industrial products such as steel?

• A)They serve needs that are the same all over the world.
• B)They have drastic national differences in consumer taste and preference.
• C)The need for local responsiveness for these products is more than consumer products.
• D)It makes sense to produce these products in multiple locations close to major markets.
• E)A plant must operate at the highest minimum efficient scale of output for these products.

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Definitions:

Economic Profits

The difference between total revenue and total economic costs (including both explicit and implicit costs), representing the additional income above the opportunity cost.

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a good or service, and where the entry of new firms is hindered.

Monopolist's Profit

The excess revenue a monopolist earns over its costs, attributable to its ability to set prices above competitive levels due to lack of competition.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.