In the context of the Production Possibilities Frontier (PPF) and comparative advantage, what is the primary goal of mass customization for producers?

• A. To maximize the total output of a single standardized product
• B. To minimize the opportunity cost of producing any good
• C. To eliminate the need for trade between producers
• D. To efficiently produce a wide variety of goods tailored to individual preferences while maintaining low costs

Answer: (D)

Verified step by step guidance

1. Understand the concept of the Production Possibilities Frontier (PPF), which illustrates the maximum possible output combinations of two goods that an economy or producer can achieve given fixed resources and technology.
2. Recall the idea of comparative advantage, which explains how producers specialize in producing goods for which they have a lower opportunity cost, leading to more efficient overall production and potential gains from trade.
3. Recognize that traditional mass production focuses on maximizing output of a single standardized product, often sacrificing variety and customization.
4. Identify that mass customization aims to combine the efficiency of mass production with the flexibility to produce a wide variety of goods tailored to individual preferences.
5. Conclude that the primary goal of mass customization is to efficiently produce diverse products while keeping costs low, which aligns with optimizing production along the PPF without necessarily maximizing output of a single good or eliminating trade.