Betty's Breads Is a Local Operation That Has Succeeded Over

question 10

Multiple Choice

Betty's Breads is a local operation that has succeeded over the years because it is consistent, reasonably priced, fast, and the product tastes great, which has allowed the company to consistently outshine its competitors. Betty's Breads has a ___ over the other bakeries in town.

• A) high production
• B) major operation technologies
• C) excellent service technology
• D) competitive advantage
• E) excellent customer service

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Definitions:

AFC (Average Fixed Cost)

The fixed costs (expenses that do not change with the level of production) divided by the quantity of goods or services produced, typically decreasing as production increases.

Marginal Cost

The cost increase that comes with producing an additional unit of a product or service.

Marginal Revenue

The heightened income realized from the sale of one more unit of a good or service.

Marginal Cost

The price involved in creating one more unit of a specific good or service.