Just-In-Time Is

question 42

Multiple Choice

Just-in-time is

• A)a method of managing production by which the firm attempts to produce each item only as needed for the next step in the production process.
• B)a method of managing purchasing by which the firm attempts to time purchases so that items arrive just in time for sale.
• C)a practice that can reduce inventory levels to virtually zero.
• D)All of the answers are correct.

---

Definitions:

Price Discriminate

The practice of charging different prices to different consumers for the same good or service, based on differing willingness to pay.

First-Degree Price Discrimination

A pricing strategy where a seller charges each customer the maximum price they are willing to pay.

Producer Surplus

The difference between the amount a producer is paid for a good versus what they would have been willing to accept, reflecting the benefit to producers from participating in the market.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.