In Planning the Long-Term Capacity of an Operation,one Should Take

question 21

Multiple Choice

In planning the long-term capacity of an operation,one should take into account:

• A)Bottlenecks
• B)Economies of scale
• C)Economies of scope
• D)Only B and C

Differentiate between capital market instruments and money market instruments.

Understand the primary and secondary financial markets and the role of financial intermediaries.

Comprehend the mechanisms of raising capital in financial markets through the issuance of securities.

Recognize the types of financial intermediaries involved in direct and indirect financial intermediation.

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Definitions:

Competitive Industry

An industry characterized by many firms producing similar goods or services, where no single firm has a dominant market share.

Market Price

The existing rate at which an asset or service is available for buying or selling in the market.

Demand Curve

A visual diagram showing the correlation between an item's price and the amount of it that consumers want to buy.

Profit Maximized

Profit maximized refers to a scenario where a firm achieves the highest possible profit from its operations, where marginal costs equal marginal revenue.