Companies That Produce Entire Inventories of Products or Components in One

question 7

Multiple Choice

Companies that produce entire inventories of products or components in one or very few optimal locations are most likely to follow a ________ strategy.

• A) retrenchment
• B) global
• C) blue ocean
• D) multinational

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Definitions:

Elastic

A characteristic of a good or service that indicates a greater than proportional change in quantity demanded or supplied in response to price changes.

Inelastic

Describes demand or supply that is relatively unresponsive to price changes, meaning quantity demanded or supplied changes little when price changes.

Unitary Elasticity

A situation where a one percent change in the price of a product results in a one percent change in the quantity demanded.

Federal Excise Tax

A tax imposed by the federal government on the sale of specific goods and services, such as gasoline, cigarettes, and alcohol.