Question

Back in the early 1980s, TipeRite typewriters were popular among students because they were solid, yet inexpensive. TipeRite was able to make a profit despite its low prices because it kept its costs low. But in the late 1980s and 1990s, more and more students abandoned typewriters and began using personal computers and word processing software. Even though the new technology was much more expensive than typewriters, it was also much more versatile and powerful. Soon TipeRite couldn't find anyone to buy its products despite its low prices. The company's trouble illustrates that:

a. efficiency doesn't guarantee success if other firms provide products of greater value.
b. it is more important for firms to be efficient than it is to be effective.
c. effectiveness is no longer a relevant concept when there is a change in technology.
d. goods require efficiency, while services require effectiveness.

Answer 1

The trouble faced by TipeRite typewriter company illustrates that efficiency doesn't guarantee success if other firms provide products of greater value.

Step-by-step explanation:

The trouble that TipeRite typewriter company faced, where they couldn't find anyone to buy their products despite their low prices, illustrates that efficiency doesn't guarantee success if other firms provide products of greater value.

In the case of TipeRite, even though they were able to keep their costs low and offer inexpensive typewriters, students abandoned typewriters in favor of personal computers and word processing software because they were more versatile and powerful.

This shows that providing a product of greater value, in this case, the personal computers and word processing software, outweighed the cost savings of the typewriters produced by TipeRite.