The Disadvantage of Building Up Inventory During the Off Season

question 9

Multiple Choice

The disadvantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is

• A)very low inventory costs because no inventory needs to be carried from period to period.
• B)very high inventory costs because inventory needs to be carried from period to period.
• C)in the fact that a firm could get by with a smaller,less expensive factory.
• D)in the fact that a firm could get by with a larger,more expensive factory.

---

Definitions:

Classical Conditioning

A learning process where two stimuli are repeatedly paired; a response that is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.

Higher Class

A social stratum associated with high status, wealth, and power in a society.

Celebrity

A well-known individual, especially in entertainment or sports, who commands a significant degree of public fascination and influence.

Negative Reinforcement

A behavioral technique in which the removal of an undesirable or unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated.