Multiple Choice
In a perfectly competitive market, a firm will continue producing in the short run as long as it can cover its:
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3. The Market Forces of Supply and Demand
Competitive Markets
Multiple Choice
Which of the following businesses would be least likely to use an intermittent process in a competitive market?
A
An automobile assembly plant
B
A print shop offering personalized invitations
C
A tailor making bespoke suits
D
A bakery producing custom cakes
Verified step by step guidance1
Step 1: Understand what an intermittent process is. An intermittent process is a production method used for goods that are made in small batches or customized orders, where production is not continuous but starts and stops based on demand.
Step 2: Identify the characteristics of each business option. For example, a print shop offering personalized invitations, a tailor making bespoke suits, and a bakery producing custom cakes all produce customized or small-batch products, which fits the intermittent process model.
Step 3: Consider the nature of an automobile assembly plant. Such plants typically use a continuous or mass production process, where standardized products are produced on assembly lines with high volume and efficiency, not intermittent production.
Step 4: Compare the production processes. Since the automobile assembly plant produces standardized products in large quantities, it is least likely to use an intermittent process compared to the other businesses that focus on customization and small batches.
Step 5: Conclude that the automobile assembly plant is the correct answer because its production process is continuous and standardized, unlike the intermittent processes used by the other businesses.
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