A Firm Practices a Pure Chase Strategy

question 27

Multiple Choice

A firm practices a pure chase strategy.Production last quarter was 1000.Demand over the next four quarters is estimated to be 900,700,1000,and 1000.Hiring cost is $20 per unit,and layoff cost is $5 per unit.Over the next year,what will be the sum of hiring and layoff costs?

• A)$500
• B)$2,500
• C)$7,500
• D)$7,000
• E)$12,500

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Definitions:

Kurt Lewin

A psychologist known for his field theory in social science, which suggests that human behavior is the result of the interactions between an individual and their environment.

Change Model

A framework or guide designed to manage and lead change within an organization, project, or system.

Equilibrium State

A condition in which all acting influences are balanced, leading to a stable and unchanging system in physical, chemical, or social contexts.

Task Difficulty

The level of effort and skill required to complete a task or achieve a goal.