Which of the Following Is an Example of a Product

question 181

Multiple Choice

Which of the following is an example of a product modification?

• A) changing the amount of management time spent overseeing production
• B) changing the colour of a laundry detergent
• C) increasing the number of distribution outlets
• D) dropping a product from the product line

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Definitions:

Marginal Cost

The expense incurred from the manufacture of an extra single product or service.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Profit Maximization

The approach a corporation takes to figure out the price and production level that brings in the most profit.

Profit Sharing

A company policy wherein employees receive a share of the profits of the business, which serves as a motivation and reward for their performance.