A Firm Is Weighing Three Capacity Alternatives: Small, Medium, and Large

question 80

Essay

A firm is weighing three capacity alternatives: small, medium, and large job shop. Whatever capacity choice is made, the market for the firm's product can be "moderate" or "strong." The probability of moderate acceptance is estimated to be 20%; strong acceptance has a probability of 80%. The payoffs are as follows. Small job shop, moderate market = $44,000; Small job shop, strong market = $75,000. Medium job shop, moderate market = $60,000; medium job shop, strong market = $89,000. Large job shop, moderate market = -$15,000; large job shop, strong market = $102,000. Which capacity choice should the firm make?

Identify the attributes of a strong entrepreneurial mindset.

Understand the concept of cognitive dissonance and its effects on behavior and attitudes.

Identify factors that influence balance and unbalance in relationships.

Differentiate between cognitive consistency theories and their applications in social psychology.

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Definitions:

Data Ranks

A method of placing data elements in ascending or descending order, based on their value or position in a distribution.

Likert Scale

A psychometric scale commonly involved in research that utilizes questionnaires, designed to measure attitudes or opinions with a range of fixed responses.

Quality Of Service

A measure of the overall performance of a service or product, especially in the context of telecommunication and computing.

Airlines Ranking

A system that evaluates and orders airlines based on various performance metrics such as safety, punctuality, and service quality.