Which One of the Following Statements About Capacity Cushion Is

question 94

Multiple Choice

Which one of the following statements about capacity cushion is best?

• A) Large capacity cushions are more likely to be utilized when future demand is known.
• B) Small cushions are used when the product mix often changes.
• C) Return of investment is about the same for capital-intensive firms, regardless of their capacity cushions.
• D) The best-sized cushion varies by industry and firm.

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Definitions:

Mental Efficiency

The effectiveness with which an individual can perform cognitive tasks, including problem-solving, memory, and reasoning.

Conformity Pressures

The pressure applied by a group that motivates individuals to modify their attitudes, values, or actions to conform with the norms of the group.

Polarization Theory

A theory suggesting that groups tend to make decisions that are more extreme than the initial inclination of its members.

Risky Shift Theory

suggests that people in groups tend to make riskier decisions compared to when making decisions alone due to diffused responsibility.