Full Question :
Which statement BEST describes how the input cost of the new packaging affects the output to the costumers? A) The costumers did not like the barrel, because it took up too much room. B) The costumers liked to barrel, because it was useful for holding other items. C) The costumers did not like the barrel, because it the market price of chips had to be increased. D) The costumers liked the barrel, because the chips were able to stay fresher longer and there were fewer broken chips. Eliminate
Answer:
C) The costumers did not like the barrel, because it the market price of chips had to be increased.
Explanation:
The input cost from the above has increased output cost. The input cost of packaging the goods affected the output cost such that it increased output costs. This is common where managers feel the need that goods require better or more attractive packaging that would appeal to consumers better. As a result costs of output or price of goods increase to cover the added costs of packaging as is seen in the above where customers don't like product because of increased price.
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