Raj's Company Can Either Make the Components or Buy Them

question 34

Multiple Choice

Raj's company can either make the components or buy them.In which situation should he decide to make the components rather than buy them from a supplier?

• A)When utilisation of plant capacity permits more economical production.
• B)When an outside supplier specialises in the production of that component.
• C)If in-house operations can concentrate on the business's specialty - the finished product.
• D)If the risk of equipment obsolescence can be transferred to the supplier.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Extinction

In psychology, the diminishing of a conditioned response when the reinforcement is withheld or the stimulus is repeatedly presented without the unconditioned stimulus.

Generalization

The process of applying the knowledge or response acquired from specific stimuli to similar stimuli.

Spontaneous Recovery

The return of a response that had been previously diminished, following an interval where the conditioned stimulus was not presented.