Which of the Following Fits with a Preemptive Facilities Strategy

question 10

Multiple Choice

Which of the following fits with a preemptive facilities strategy?

• A) Wait and see what competitors do, then seek to match or exceed their capacity.
• B) Create a positive capacity cushion to stimulate the market.
• C) Reduce risk by allowing capacity to lag the market by a small amount.
• D) All of the above.

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Definitions:

Potential Output

This refers to the maximum output an economy can produce without leading to inflation, assuming all resources are fully utilized.

Actual Price Level

The Actual Price Level refers to the current general level of prices for goods and services in the economy at a specific point in time.

Actual Price Level

The current average of all prices of goods and services in an economy, indicating the cost of living and the economic environment.

Potential Output

The maximum amount of goods and services an economy can produce when it is fully employing its resources.