Which One of the Following Statements About Capacity Cushion Is

question 99

Multiple Choice

Which one of the following statements about capacity cushion is best?

• A) Return of investment is about the same for capital- intensive firms, regardless of their capacity cushions.
• B) Large capacity cushions are more likely to be utilized when future demand is known.
• C) Small cushions are used when the product mix often changes.
• D) The best- sized cushion varies by industry and firm.

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Definitions:

Shock Machine

Often associated with psychological experiments, it refers to a device used to deliver an electric shock to a subject, typically used in studies on obedience, learning, and punishment.

Stanley Milgram

A psychologist best known for his research on obedience to authority, which revealed how people are willing to follow orders even when it results in harming others.

Obedience

Compliance with an order, request, or law, or submission to another's authority.

Volts

The unit of measurement for electric potential difference or electromotive force, symbolizing the force that drives electrons through a conductor.