Multiple Choice
In a competitive market economy, which of the following factors is directly affected by competition?
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3. The Market Forces of Supply and Demand
Competitive Markets
Multiple Choice
Which of the following goods are typically produced under a make-to-order approach in competitive markets?
A
Standardized light bulbs
B
Bottled water
C
Custom furniture
D
Packaged breakfast cereal
Verified step by step guidance1
Step 1: Understand the concept of 'make-to-order' production. This approach means goods are produced only after a customer places an order, allowing customization and reducing inventory costs.
Step 2: Identify characteristics of goods suitable for make-to-order. Typically, these goods are customized, have longer production times, and are not mass-produced in advance.
Step 3: Analyze each option: Standardized light bulbs and bottled water are mass-produced and stocked before sale, so they are usually make-to-stock, not make-to-order.
Step 4: Packaged breakfast cereal is also mass-produced with standardized features, making it a make-to-stock product rather than make-to-order.
Step 5: Custom furniture is tailored to individual customer specifications and produced after an order is received, fitting the make-to-order production model.
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