A Firm Practices the Pure Chase Strategy

question 70

Multiple Choice

A firm practices the pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and firing cost is $5 per unit. Over the next year, the sum of hiring and layoff costs will be

• A) $500
• B) $2,500
• C) $7,500
• D) $7,000
• E) $12,500

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Definitions:

Pectineus

A muscle in the thigh that aids in hip flexion and adduction, moving the thigh toward the body's midline.

Transverse Abdominis

A muscle layer of the anterior and lateral abdominal wall which is deep to (layered below) the internal oblique muscle.

Rectus Abdominis

A paired muscle running vertically on each side of the anterior wall of the human abdomen, involved in flexing the lumbar spine.

Pectoralis Group

A group of muscles located at the front of the chest, involved in movements of the shoulder and arm.