Question

While buying a car, a potential buyer takes into consideration several aspects of the car, such as its design, quality, ease of servicing, speed, and mileage. An automobile company, that takes into consideration all these aspects while manufacturing and selling its cars, is said to be practicing the _____.

Answer 1

The correct answer is Total Value Concept

Step-by-step explanation:

The total value is the value of a product, good or service determined by the supply and demand of the market, since it is the net amount that a seller could obtain from the sale of said product, good or service under standard trading conditions in the market, therefore, it is sometimes also known as open market value, although this term has a different definition in different standards.

All business ventures are intended to generate economic benefits (profits). Obtaining benefits is linked to total costs because, if the production costs are very high, the revenue from sales is hardly sufficient to make a profit.