A Firm Can Handle Predictable Variability by Managing

question 13

Multiple Choice

A firm can handle predictable variability by managing

• A)supply using capacity,inventory,trade promotions,and backlogs.
• B)supply using capacity,inventory,subcontracting,and backlogs.
• C)demand using short-term price discounts and trade promotions.
• D)B and C only

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Definitions:

Capital Market

The input/factor market in which households supply their savings, for interest or for claims to future profits, to firms that demand funds to buy capital goods.

Investment

New capital additions to a firm’s capital stock. Although capital is measured at a given point in time (a stock), investment is measured over a period of time (a flow). The flow of investment increases the capital stock.

Demand Curve

A graph showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at various prices.

Hoverboards

Self-balancing scooters that use gyroscopic technology to allow users to move based on the direction and speed of their body lean.