What Was Considered the Source of Mickey Drexler's Inventory Problems

question 32

Multiple Choice

What was considered the source of Mickey Drexler's inventory problems at Gap?

• A) He personally approved sweatshop-affiliated contract manufacturers
• B) He wrote the code for Gap's disastrously broken inventory system
• C) The firm guessed wrong about fashion, placing big bets on trends that consumers didn't want
• D) He led a botched merger with Disney in the hopes that combining technology with the Disney Store would create a super-efficient set of shopping mall destination stores.

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Definitions:

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, often seen as profit.

Producer Surplus

The disparity between the price suppliers are ready to settle for when selling a good or service and the greater amount they end up receiving.

Cost of Production

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Producer Surplus

The variance between the lowest price producers agree to sell a good or service for and the price they actually get.