Cheap Custom Essay:The definition of “short-term” depends on the business context. What would General Motors consider as short-term? Is this period longer than what a bakery would consider as short-term? Why?
The definition of “short-term” depends on the business context. What would General Motors consider as short-term? Is this period longer than what a bakery would consider as short-term? Why?
Automobile dealers frequently advertise sales because their lots are “overflowing.” The ads suggest a shortage of storage capacity but the price-cutting action indicates a demand shortfall. How can you reconcile these seemingly contradictory inferences?
Identify the one resource whose daily supply is fixed for each person. How could we improve the effectiveness with which we consume this resource?
Some people argue that the gross method is also, at some level, “incremental.” Evaluate this argument.
When faced with a sudden spurt in demand, why does it sometimes make sense for a company to increase prices? For example, why do airlines raise fares during peak travel periods? Why might it not be a good idea for consulting companies?
In periods of excess capacity, does it make sense for a manufacturing company to produce some products to stock (i.e., build up inventory) for sale in future periods of high demand? Give two examples of industries where this might be a good idea. Give two examples where it might be a bad idea.
