The Three Basic Production Strategies for Addressing the Aggregate Planning

question 40

True/False

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy,the level production strategy,and the mixed production strategy.

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Definitions:

Units

Basic quantities or measurements, such as liters, meters, or kilograms, used to specify magnitudes of physical quantities.

Supply Curve

A graph showing the relationship between the price of a good and the amount of the good that suppliers are willing to sell, holding other factors constant.

MC Curve

A graphical representation of how the cost to produce one additional unit (marginal cost) changes as production increases.

AVC Curve

The Average Variable Cost curve, which shows the variable cost per unit at different levels of output.