A Firm Practices a Chase Strategy

question 6

Multiple Choice

A firm practices a chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 500, 1000, and 1000. Hiring cost is $20 per unit, and layoff cost is $5 per unit. Over the next year, what will be the sum of hiring and layoff costs?

• A) $500
• B) $2,500
• C) $7,500
• D) $7,000
• E) $12,500

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Definitions:

Motivational Theory

A concept that explains what motivates individuals to behave in certain ways, focusing on the drivers of human actions.

Pursuing Goals

The process of setting, striving for, and working diligently to achieve specific objectives or outcomes.

Expectancies

Beliefs or predictions about the likelihood of future events affecting behavior and decision-making.

Schemas

Cognitive frameworks or concepts that help individuals organize and interpret information, based on their past experiences and knowledge.