In the Service Sector, Which of the Following Aggregate Planning

question 66

Multiple Choice

In the service sector, which of the following aggregate planning strategies might direct your client to a competitor?

• A) using part-time workers
• B) subcontracting
• C) changing inventory level
• D) varying production rates through overtime or idle time
• E) varying workforce size by hiring or layoffs

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Definitions:

Supply-and-Demand

A fundamental economic model that describes how the price and quantity of goods and services are determined in a market based on the amount available (supply) and the desire to purchase (demand).

Equilibrium Output

The level of output where the quantity of goods or services producers are willing to supply equals the quantity consumers are willing to buy, resulting in market equilibrium.

Competitive Firm

A company that operates in a market where there are many buyers and sellers, and it has little control over the market price.

MC Curve

The graphical representation of how the cost to produce an additional unit of a good changes with the production volume.