Which of the Following Supports the Argument That Customer Demands

question 55

Multiple Choice

Which of the following supports the argument that customer demands for local customization are on the decline worldwide?

• A)Local and indigenous industries are increasingly filling up available demand.
• B)High costs of local customization are deterring companies from doing so.
• C)Governments across the world are standardizing their legal procedures.
• D)Customer tastes have converged worldwide.
• E)Managers worldwide ignore the differences in consumer tastes and preferences.

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Definitions:

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, which decreases as production increases.

Law Of Diminishing Returns

An economic principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Economies Of Scale

The situation when a firm’s average total cost of producing a product decreases in the long run as the firm increases the size of its plant (and, hence, its output).

Variable Inputs

Factors of production that change in quantity as the level of output changes, such as labor or raw materials, in contrast to fixed inputs like machinery or land.