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A company with a high level of efficiency and effectiveness is most likely to produce:

A. a product that customers want, but that is too expensive for them to buy.

B. a product that customers want at a quality and price they can afford.

C. a product that is inexpensive and non-durable.

D. a high-quality product that has limited utility for customers.

E. a product that requires customers to invest in expensive service packages.

User Eldams
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Final answer:

A company with high efficiency and effectiveness is most likely to produce products that customers desire at an affordable price and quality (option B). Competitive markets drive firms to minimize waste and prices while maximizing product appeal, leading to better options for consumers and profits for companies.

Step-by-step explanation:

A company with a high level of efficiency and effectiveness is most likely to produce a product that customers want at a quality and price they can afford, which is option B. Efficiency in business entails producing goods or services without waste along the production possibility frontier. In perfectly competitive markets, this means that the goods are sold at the lowest possible average cost, reflecting productive efficiency. Effectiveness, on the other hand, means creating products with desired features that meet consumer demand.

When companies like Samsung emphasize relentless pursuit of innovation, as stated by CEO Gregory Lee, they are focusing on effectiveness. This strategic approach allows them to temporarily have an edge over competitors and earn above-normal profits. Innovative firms that are able to continuously create products that resonate with consumers can gain a significant market advantage. Moreover, the competition from firms producing better or cheaper products benefits consumers with more affordable and superior options, ultimately increasing businesses' profits and improving employees' income.

Therefore, a high-efficiency, high-effectiveness firm is more likely to offer products that strike the right balance between quality, durability, utility, and cost, making option B the most likely outcome for such a company.

User Myaut
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