In which of the following situations is a firm with a production orientation most likely to survive?
A) There are many small competitors in the marketplace.
B) Demand for the product it produces exceeds supply.
C) Needs of the marketplace are shifting.
D) Supply for the product it produces exceeds demand.
E) What the firm can best produce is not what the market wants.

Question

Quizplus · Accepted Answer

A firm with a production orientation focuses on efficient production and relies on the assumption that consumers will buy whatever is available and affordable. In situations where demand for the product exceeds supply, this approach can work well as the firm can focus on increasing production to meet the demand. However, in situations where there are many small competitors, needs of the marketplace are shifting or what the firm produces is not what the market wants, a production orientation is less likely to be successful. When supply exceeds demand, it can also be difficult for a production-oriented firm to continue operating efficiently.

In Which of the Following Situations Is a Firm with a Production