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Author Question: An organization whose capacity is on that portion of the average unit cost curve that falls as output rises (Read 67 times)

littleanan

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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.


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Marked as best answer by littleanan on Dec 3, 2019

carolinefletcherr

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littleanan

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Reply 2 on: Dec 3, 2019
YES! Correct, THANKS for helping me on my review


31809pancho

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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