Capacity will be modified in response to demand. Demand will be modified in response to capacity. Which of these two statement is correct? Why?
True. Capacity has no value if marginal cost is greater than marginal revinue! the demand curve is to be hit at the point where the greateds revinue can be made and the least amount of cost!
When there is demand for more goods and services than current capacity can support at the lowest unit costs, capacity is expanded to provide greater output at the lowest cost. Meanwhile, the extra supply comes from less efficient methods of producing above normal capacity rates. Examples are working staff overtime, running equipment beyond it's recommended number of hours between preventative maintenance down time, etc. These temporary measures create higher costs in terms of employee burnout and turnover, paying premium rates for overtime, and excess equipment breakdowns due to insufficient preventative maintenance.
By shifting demand and capacity an organization seeks to shift customers away from periods in which demand exceeds capacity. Perhaps by convincing them to use the service during periods of slow
___ __________ _________ ___ __________ ___ _____ _______ _____.
______ ________ ______ ______ __________ ________ __________ ________.
________ _______ ______ ___ __________ _________ _____ ___ _____ ________.
________ _______ _______ _______ __________ _____ _____ ________.
__________ ____ _____ __________ ___ ________.
____ _____ ________ ___ _______ ______ __________ _______ _______ ______ _____.
__________ ________ _______ __________ _________ ___.
______ ___ ____ _____ ____ __________ ____ _____ _________.
_________ _______ ________ ___ _____ ___ _________ _____ ______ ______ ____ ____.
_______ ______ __________ ______ ______ ________ ________.
______ ____ _____ _________ _______ __________ ______ ______ _________ _______.
__________ ___ ________ ____ _________ _______ __________.
________ _________ ________ ________ _____ ___ ______ ______ ________ ____ ___.
______ ___ ______ _________ ____ ___ _________ __________ ___ _______ ___ ____.
____ ______ ____ ________ _____ _____ ______ ________ __________ _______ _______.
________ ___ ____ _______ ____ _______ ________ ______ ______.
__________ ______ _______ ______ _________ _____.
___ _______ __________ _____ _____ __________ ___ _________ _______ _________.
_____ __________ _____ ________ _________.
__________ __________ ________ ____ _________.
_____ ________ _________ __________ ____ _______ _______ _________ ____.
____ ____ ___ _____ ________ ________ _______.
__________ ____ _______ _______ _______ _______.
________ _________ _______ __________ _________.
__________ _____ _____ ______ ________ ______ _____ ____.
_______ __________ __________ _________ ____ _________ _____ ______ ______.
__________ ____ _______ ________ ___ _____ ________ __________.
_____ ______ __________ ___ ________ _____ ________ ______.
_____ _________ _____ ________ ____ ______ ______ ____ _________ __________ ___.
_________ _____ _____ ____ _________ _________ ________ _______ _____.
__________ __________.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
✓ Unlock up to 60% of the answer
✓ No payment required