Author Question: An organization whose capacity is on that portion of the average unit cost curve that falls as output rises (Read 57 times)

ec501234 · **on:** Dec 3, 2019

Question 1

Adding a complementary product to what is currently being produced is a demand management strategy used when
◦ efficiency exceeds 100%.
◦ the existing product has seasonal or cyclical demand.
◦ demand exceeds capacity.
◦ price increases have failed to bring about demand management.
◦ capacity exceeds demand for a product which has stable demand.

Question 2

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises
◦ has utilization higher than efficiency.
◦ has a facility that is below optimum operating level and should build a larger facility.
◦ has a facility that is above optimum operating level and should build a smaller facility.
◦ is suffering from diseconomies of scale.
◦ has efficiency higher than utilization.

vish98 · **Reply #1 on:** Dec 3, 2019

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