Which One of the Following Actions Applies to a Level

question 51

Multiple Choice

Which one of the following actions applies to a level strategy?

• A) Hire workers to increase production output to match increases in demand requirements.
• B) Build anticipation inventory to meet the variability in demand.
• C) Decrease production output to match any decreases in demand requirements.
• D) Use promotional campaigns to boost demand.

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Definitions:

Anticipated Markup

The expected percentage added to the cost of goods to calculate the selling price, aiming for profit.

Elastic Demand

A situation where demand for a product or service significantly changes in response to changes in price.

Inelastic Demand

A situation where the demand for a product or service does not significantly change in response to price changes, indicating consumers' strong need or preference for the product.

Sensitive to Price

Sensitive to price describes a situation where demand for a product is highly affected by changes in its price.