The Theory of Constraints Uses ______ Performance Measures to Evaluate

question 1

Multiple Choice

The theory of constraints uses ______ performance measures to evaluate whether the effectiveness of the improvements made has enabled the system to make more money.

• A)two
• B)three
• C)four
• D)five

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Definitions:

Substitute Products

Products for which changes in demand are negatively related; that is, a percentage increase in the quantity demanded for product A results in a percentage decrease in the quantity demanded for product B.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influencing pricing strategies.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Pricing Strategies

Approaches businesses use to set the prices of their products or services, taking into account costs, competition, customer demand, and market conditions.