Describe Why a Firm Utilizing Assembly Lines May Wish to Utilize

question 43

Essay

Describe why a firm utilizing assembly lines may wish to utilize shorter production runs. What disadvantages might such an approach pose?

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Definitions:

Production Decision

The process of deciding on the quantity of goods or services to produce, based on various economic factors.

Short-run

A period in which at least one factor of production is fixed, limiting the ability to adjust to changes in market conditions.

Perfectly Competitive Industries

Markets where there are many buyers and sellers, products are homogeneous, and no single entity has the ability to influence prices.

Quantity Of Output

The total amount of goods or services produced by an individual, firm, industry, or entire economy in a given period.