In order to achieve low unit costs, Logitech Electronics has only produced 1000 computer mice. It's wholesale customers want to buy at least 1500 units. What has the quantity produced to achieve low unit costs created?

Question

Quizplus · Accepted Answer

The production quantity of 1000 units created a discrepancy of quantity, as there is a difference between the quantity produced and the quantity demanded by wholesale customers. This could potentially lead to higher unit costs if Logitech Electronics decides to produce additional units to meet demand, as they may not be able to achieve the same low unit costs due to economies of scale.

In Order to Achieve Low Unit Costs, Logitech Electronics Has