When Faced with Seasonal Demand,a Firm Should Use a Combination

question 53

True/False

When faced with seasonal demand,a firm should use a combination of pricing (to manage demand)and production and inventory (to manage supply)to improve profitability.

---

Definitions:

Consumption Tax

A levy imposed on the acquisition of goods and services, charged at the time of purchase.

Income Tax

A charge imposed by authorities on the earnings of individuals and enterprises operating within their territory.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating how much of an additional dollar earned will be taken in taxes.

Average Tax Rate

The proportion of total income that is paid as tax, calculated by dividing the total amount of tax paid by the total income.