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Suppose Management Wants to Keep Capacity Fixed but Level Demand

question 29

Essay

Suppose management wants to keep capacity fixed but level demand to provide timely service and maintain high capacity utilization. What are the methods for accomplishing this goal?


Definitions:

Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers may legally pay to workers.

Structural Unemployment

Unemployment caused by changes in the industrial makeup of an economy or technological innovations that render certain job skills obsolete.

Equilibrium Wage

The pay rate where the amount of work offered matches the amount of work required.

Union Membership

The state of being a member of a labor union, which is an organization that represents the collective interests of workers.

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