Once a division manager sees that production goal for a time period is likely to be met
a. he has an incentive to increase the pace of production
b. he has an incentive to decrease the pace of production
c. he does not have an incentive to change the pace of production
d. he has an incentive to produce other products
QUESTION 2All these increase differentiation, except
a. Product branding
b. Reducing quality
c. Advertising
d. Limiting availability
QUESTION 3The marginal product is defined as:
a. The ratio of total output to the amount of the variable input used in producing the output
b. The incremental change in total output that can be produced by the use of one more unit of the variable input in the production process
c. The percentage change in output resulting from a given percentage change in the amount
d. The amount of fixed cost involved.
e. None of the above
QUESTION 4A production goal may be set too high by upper management because
a. they are unsure about the actual costs of production
b. they under-estimate the difficulty of meeting a goal
c. division managers over-state the difficulty of meeting the goal
d. all of the above
QUESTION 5Supplier power tends to be low when
a. Suppliers are less concentrated
b. Inputs provided by the supplier are not vital
c. Inputs are less differentiated
d. All the above
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