A Firm Practices a Chase Strategy

question 56

Multiple Choice

A firm practices a 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 layoff cost is $5 per unit.Over the next year,what will be the sum of hiring and layoff costs?

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

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Definitions:

Target Market

A specific group of consumers on whose needs and wants a company focuses its marketing efforts.