A Single-Period Duopoly Firm Can Choose Output Level a or B.The

question 95

Multiple Choice

A single-period duopoly firm can choose output level A or B.The firm decides it will produce level A regardless of what the other firm produces.This decision may occur because

• A) producing the output level A is a dominant strategy.
• B) this firm has simply decided to always produce at level A.
• C) Both A and B are possible.
• D) None of the above.

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Definitions:

Kanban

The Japanese word for card, which has come to mean “signal”; a kanban system moves parts through production via a “pull” from a signal.

Safety Stock

Additional inventory maintained to mitigate the risk of stockouts due to uncertainties in demand or supply chain disruptions.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in manufacturing and project planning.

Level Schedules

Production planning method that maintains a consistent output rate or workforce level, avoiding fluctuations in response to changing demand.