What Information Would Managers Use to Choose the Best Cost-

question 10

Multiple Choice

What information would managers use to choose the best cost- effective capacity to balance customer service with the cost of adding capacity?

• A) capacity cushion
• B) decision trees
• C) waiting line models
• D) economies of scale

---

Definitions:

Import Quota

A government-imposed limit on the quantity of a specific good that can be imported into a country within a given timeframe.

Specific Tariff

A fixed fee imposed on imported goods based on quantity, such as units, weight, or volume, rather than value.

Ad Valorem Tariff

A tax imposed on imported goods, calculated as a percentage of the value of the imports rather than a fixed rate.

World Price

The global market cost for a product or service, set by the overall demand and supply dynamics.