How Can ABM Be Used to Manage Constrained Resources

question 44

Multiple Choice

How can ABM be used to manage constrained resources?

• A) ABM cannot be used to manage constrained resources
• B) ABM can help managers identify the best way to relax constraints
• C) ABM can help managers decrease the rate at which products get through the manufacturing process
• D) ABM can help managers justify price increases due to constrained resources

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Definitions:

Land Taxes

Taxes imposed on property owners based on the value of their land, commonly used by governments as a source of revenue.

Incentive Function

The inducement that an increase in the price of a commodity gives to sellers to make more of it available (and conversely for a decrease in price), and the inducement that an increase in price offers to buyers to purchase smaller quantities (and conversely for a decrease in price).

Rental Payments

Rental payments are periodic payments made by a tenant to an owner for the use of property, such as for housing or commercial space.

Productive Efficiency

The production of a good in the least costly way; occurs when production takes place at the output at which average total cost is a minimum and marginal product per dollar’s worth of input is the same for all inputs.