Lexus Enjoyed an Advantage by Making It Much Easier for Local

question 27

Multiple Choice

Lexus enjoyed an advantage by making it much easier for local dealers to deal with warranty problems, thereby keeping the customer happy.This shows the importance of the _________ communicated by a warranty.

• A) Competitive advantage
• B) Costs and benefits
• C) Message
• D) Product differentiation
• E) Persuasiveness

---

Definitions:

Marginal Product

The elevation in production output stemming from the addition of one unit of input.

Profit Maximization

The process or strategy where a firm adjusts its production to achieve the highest possible profit.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery, buildings, and land.

Labor

The contribution of human physical and mental energies in the fabrication of goods and the supply of services.