When businesses developed mass-production techniques and capacity exceeded immediate demand, the:

• A. focus shifted from production to marketing and selling products
• B. economy experienced a shortage of consumer goods
• C. labor unions gained complete control over production decisions
• D. government imposed strict price controls to limit output

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the context of mass production in microeconomics. Mass production refers to the large-scale manufacturing of standardized products, often leading to increased supply capacity.
2. Step 2: Analyze what happens when production capacity exceeds immediate demand. This means businesses produce more goods than consumers are currently willing or able to buy.
3. Step 3: Recognize the economic implications of excess supply. When supply exceeds demand, businesses cannot sell all their products easily, leading to potential inventory buildup.
4. Step 4: Consider how businesses respond to excess supply. Since producing more is no longer the main challenge, firms shift their focus to strategies that help sell the existing products, such as marketing and sales efforts.
5. Step 5: Conclude that the shift from production to marketing and selling products is a natural response to excess capacity, rather than shortages, labor union control, or government price controls.