Dean runs a woodworking business specializing in kitchen cabinets.He knows there are other firms with top-of-the-line machinery that make better quality cabinets,but he does well and has a constant flow of business.Dean obviously has
A) figured out how to produce cheap products.
B) priced his products well.
C) reduced his variable costs by investing in fixed costs.
D) avoided monopolistic competition,and is instead in a market with pure competition.
E) learned how to use status quo pricing.

Question

Quizplus · Accepted Answer

Dean's constant flow of business suggests that he has priced his products well, which has allowed him to compete in the market despite facing competition from firms with better machinery. This indicates that he has found a sweet spot in the market where he can attract customers with a good balance of quality and price.

Dean Runs a Woodworking Business Specializing in Kitchen Cabinets