________ Is the Continuing Reduction in the Demand for a Company's

question 132

Multiple Choice

________ is the continuing reduction in the demand for a company's products that occurs when competitor prices are not met.

• A)Downward demand spiral
• B)Normal capacity
• C)Theoretical capacity
• D)Practical capacity

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Definitions:

Opportunity Cost

The potential benefit that is missed out on when choosing one alternative over another.

Production Possibilities

Production possibilities refer to the different combinations of goods and services that an economy can produce given its available resources and technology, illustrated by the production possibilities frontier (PPF).

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their immediate needs and wants.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing an action.