Which of the Following Statements About Mass Customization Is True

question 37

Multiple Choice

Which of the following statements about mass customization is true?

• A) Anderson's windows, which an architect can order in just about any combination of size, hardware, and style, is a good example of mass customization for business markets.
• B) Mass customization avoids the need for working capital.
• C) Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets.
• D) The mass-customization approach applies only to services, and they often must be custom produced anyway.
• E) Mass customization reduces production costs but it's less likely to meet a customer's needs.

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Definitions:

Increasing Cost Industry

An industry in which production costs increase as output expands, typically due to factors such as input limitations and increased demand for inputs.

Long-Run Supply Curve

A curve showing the relationship between price and quantity supplied that takes into account all possible adjustments in inputs and outputs.

Constant-cost Industry

An industry where the costs of production do not change as the total output in the industry changes.

Long-run Supply

Long-run Supply refers to the quantity of a good that producers are willing and able to supply onto the market at different price levels when all production inputs can be varied.