Refer to the Scenario Below to Answer the Following Questions

question 41

Multiple Choice

Refer to the scenario below to answer the following questions.
Quality and Mass Customization (Scenario)
Upon graduating from college, Steve Jungman began his career as a management trainee at Felcher & Sons Inc., a manufacturer of mid-priced office furniture. The firm has recently decided to expand overseas with manufacturing plants in Singapore and Thailand and sales offices in the Asia, Europe, and Australia. In conjunction with this investment in new plants and technologies, the firm plans develop an online presence that will enable customers to individually tailor the products they order from Felcher & Sons. Terry Tate, VP of operations for Felcher & Sons, is overseeing the development of these plants and the new production capabilities. Mr. Tate has asked that Steve be assigned to help him in this process.
-Tate asks Steve to research other companies that use technology to maintain a dialogue with their customers. Steve discovers that Amazon.ca uses its website to __________.

• A) collect financial information about its customers
• B) survey customers and provide product preference information to its partner companies
• C) attract more customers through viral marketing techniques
• D) promote products that the customer would not normally purchase
• E) greet customers by name and offer personalized recommendations of products

Determine the profit-maximizing output level for a firm in the short run.

Analyze the conditions under which a firm should continue production or shut down in the short run.

Understand and apply the marginal decision rule in the context of economic profit maximization.

Analyze the effect of changes in market price on a firm’s marginal revenue, output level, and economic profit.

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Definitions:

Testable

Characteristics of a hypothesis or theory that allows it to be disproved or supported through scientific experimentation or observation.

Predictions

Statements or claims made about the future based on current evidence or observations.

Recently Reported

Pertains to information or events that have been disclosed or made known in the near past.

Replication

The process of repeating a research study or experiment to confirm its findings or to ensure accuracy.