Firms That Continue to Produce When Sales Are Temporarily Low

question 15

Multiple Choice

Firms that continue to produce when sales are temporarily low in an effort to avoid costly fluctuations in production are engaging in ________.

• A)second degree price discrimination
• B)stock out avoidance
• C)work in progress
• D)production smoothing

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Definitions:

Observable Acts

Actions or behaviors that can be seen or measured directly.

Mental Events

Internal occurrences in the mind, such as thoughts, feelings, and perceptions, that can influence behavior.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Reflexively

In a manner that is automatic or without conscious thought, often as a direct response to a stimulus.