Adding a Complementary Product to What Is Currently Being Produced

question 18

Multiple Choice

Adding a complementary product to what is currently being produced is a demand management strategy used when

• A) demand exceeds capacity
• B) capacity exceeds demand for a product which has stable demand
• C) the existing product has seasonal or cyclical demand
• D) price increases have failed to bring about demand management
• E) efficiency exceeds 100 percent

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Definitions:

Issued

Refers to the process of making something available or distributing it, commonly used in the context of financial instruments like stocks or bonds.

Revolving Line

A type of credit that does not have a fixed number of payments, in contrast to installment loans; credit is automatically renewed as debts are paid off.

Annual Interest Rate

The percentage of interest that is charged or earned on an investment or loan over the course of a year.

Revolving Line

A credit arrangement that allows a borrower to use or withdraw funds up to a designated limit, repay them, and borrow again.