Question

in a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savings. this is an example of
following a federal regulation.
lowering prices for customers.
reducing the risk for consumers.
creating a new or better product.

Explanation:

The company uses cheaper materials to lower production costs and then “pass on the savings”. Passing on cost savings to customers typically means reducing the price customers pay. The option “following a federal regulation” is incorrect as there's no mention of regulations. “Reducing the risk for consumers” is incorrect as using cheaper materials doesn't relate to consumer risk reduction. “Creating a new or better product” is incorrect as the company is using cheaper materials, not improving or creating a new product.

Answer:

B. lowering prices for customers