In Which Kind of Market Would a Production Orientation Be

question 129

Multiple Choice

In which kind of market would a production orientation be most successful?

• A)A market that sells only intangible products
• B)A seller's market when demand exceeds supply
• C)A buyer's market when supply exceeds demand
• D)A market where there are more sellers than buyers
• E)There is no market in which a product orientation can be used successfully.

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Definitions:

Profit Maximizing

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.

Deadweight Loss

A reduction in economic productivity happens when a good or service fails to reach or cannot attain its equilibrium state.

Output

The total amount of goods or services produced by a person, machine, or industry during a given period.

Price Taking Firm

A company that must accept the market price for its product, as it has no power to influence the price due to intense competition or market conditions.