Make-To-Order

question 10

Multiple Choice

Make-to-order:

• A) Is complete customization, with the product designed from scratch to meet the customer's needs
• B) Means that manufacturing or production begins making the product after receiving an order
• C) Means marketing supplies forecasts of demand and manufacturing makes enough to handle that demand
• D) Means when a salesperson takes an order from a customer, there is an electronic record that spells out the terms of the agreement
• E) Implies that the order is a product of the salesperson's work process and an input into other work processes

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Definitions:

Deadweight Loss

The drop in economic productivity happening when the optimal free market balance for a good or service isn't met.

Price Ceiling

A price ceiling is a government-imposed limit on how high the price of a good or service can be charged in the market, usually set below the equilibrium price to ensure affordability of essential goods.

Monopolist

An entity that is the sole provider of a particular good or service, giving it the ability to control market prices and output levels.

Price Ceiling

A legal maximum price that can be charged for a good or service, aiming to prevent prices from rising too high.