The Disadvantage of Building Up Inventory During the Off Season

question 9

Multiple Choice

The disadvantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is

• A)very low inventory costs because no inventory needs to be carried from period to period.
• B)very high inventory costs because inventory needs to be carried from period to period.
• C)in the fact that a firm could get by with a smaller,less expensive factory.
• D)in the fact that a firm could get by with a larger,more expensive factory.

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Definitions:

Greenhouse Gas

Gases that trap heat in the atmosphere, contributing to the greenhouse effect and global warming.

Stock Dissipation Rate

The rate at which a particular stock (such as a natural resource) is reduced due to its use or consumption.

Current Emissions

The amount of pollutants or greenhouse gases released into the atmosphere in a given period of time.

Pollutants

Substances that contaminate the environment, causing harm to ecosystems and human health, including chemicals, noise, and waste products.