A business has concentrated on producing goods with fewer resources i.e. cutting down cost. As a result, the target production is not achieved. Consequently, the goods do not reach the market and hence the demand for them declines and competitors enter the market.
In this regard which of the following is correct?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- This is a case of being efficient but not effective since the goods did not reach the market.
At times, a business may con concentrate more on producing goods with fewer resources i.e., cutting down cost but not achieving the target production. Consequently, the goods do not reach the market and hence the demand for them declines and competitors enter the market. This is a case of being efficient but not effective since the goods did not reach the market.