Asked by Michael Mocan on May 09, 2024
Verified
Firm ABC designs and implements a lower-cost method of producing its product.This is an example of:
A) product innovation.
B) the inverted U-theory.
C) economies of scale.
D) process innovation.
Process Innovation
The introduction of a new or significantly improved production or delivery method to reduce costs, improve quality, or produce a good or service more efficiently.
Economies of Scale
Refers to the cost advantage that arises with increased output of a product, where the average cost per unit falls as scale of production increases.
Lower-Cost Method
A cost-minimization strategy that involves choosing the most economical options in order to reduce expenses and improve efficiency.
- Comprehend the notions of product and process innovation, as well as their impact on companies and consumers.
Verified Answer
MM
mitra mahdaviMay 14, 2024
Final Answer :
D
Explanation :
The design and implementation of a lower-cost method of production is an example of process innovation, as it involves improving the way a product is made rather than introducing a new product.
Learning Objectives
- Comprehend the notions of product and process innovation, as well as their impact on companies and consumers.