An Organisation That Tightly Controls Costs,refrains from Incurring Unnecessary Innovation

question 93

True/False

An organisation that tightly controls costs,refrains from incurring unnecessary innovation or marketing expenses and cuts prices in selling a basic product pursues a cost-minimisation strategy.

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Definitions:

Equilibrium Level

The state where market supply and demand balance each other, and, as a result, prices become stable.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Quantity Supplied

The total amount of a specific good or service that is available for purchase at a given price and time.

Product Shortage

A situation where the demand for a product exceeds the supply available in the market.