The Goal of Lean Manufacturing Is to

question 307

Multiple Choice

The goal of lean manufacturing is to

• A) keep inventories of finished goods as high as possible.
• B) produce goods and services with less of everything that goes into the process.
• C) produce a very limited variety of goods.
• D) become more self-sufficient by producing major components rather than buying them.

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Definitions:

Imperfectly Elastic

Describes a demand curve that does react to price changes, but not in a perfect one-to-one relationship, indicating some sensitivity to price changes but not to an infinite degree.

Substitute

A good or service that can be used in place of another to satisfy similar needs or desires.

Economic Rent

The excess payment made to a factor of production over what is necessary to keep it in its current use, reflecting payment beyond its opportunity cost.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the market.