Which One of the Following Statements Concerning Aggregate Planning Alternatives

question 126

Multiple Choice

Which one of the following statements concerning aggregate planning alternatives is best?

• A) Creating anticipation inventory has the advantage of increasing customization.
• B) Building anticipation inventory during the slack season is a demand alternative a firm can follow to satisfy seasonal demand patterns.
• C) Using overtime is an undesirable option when the overtime wage premium is high and sustained levels of top worker productivity are important.
• D) Adjusting workforce levels is an attractive capacity alternative when the cost of training and unemployment compensation is high.

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Definitions:

Cartels

Groups of independent market participants who collude with one another to manipulate the price of a good or service in the market.

Monopoly Outcome

The result of a market condition in which a single company or entity has exclusive control over a particular good or service, leading to limited competition.

Duopoly

A market structure dominated by two firms, often leading to strategic competition and pricing.

Maximize Profits

Strategies and actions taken by businesses to increase the difference between their total revenues and total costs.