When a Firm Redesigns a Product to Reduce the Number

question 160

Multiple Choice

When a firm redesigns a product to reduce the number of component parts,the firm is

• A)increasing consumer value.
• B)increasing the value added to the product.
• C)decreasing product variety.
• D)decreasing non-value-added costs.

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Definitions:

Tariff

A tax imposed by a government on imports or exports of goods.

Voluntary Exchange

An economic transaction where two parties willingly trade goods or services without coercion, each party benefiting from the trade.

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use.

Tariffs

Taxes imposed on imported goods, used by governments to regulate trade and protect domestic industries.