Which of the Following Statements Is

question 124

Multiple Choice

Which of the following statements is

• A) Both upstream and downstream costs are unnecessary and,should be minimized if not eliminated.
• B) Upstream costs occur before and downstream costs occur after goods are manufactured.
• C) Product design is an example of an upstream cost.
• D) Customer service is an example of a downstream cost.

---

Definitions:

Profitably Exploit

Involves leveraging resources or opportunities in a way that maximizes profit.

Buyer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay.

Seller Surplus

The difference between the actual selling price of a good and the seller's minimum acceptable price.

Market Distortions

Economic situations caused by inefficiencies or interventions that lead to prices not reflecting true supply and demand.