Reference no: EM132204661
1. Kallie Inc., a small parts manufacturer, has just engineered a new product for the automotive industry. In order to produce the part the company can expand existing facilities, acquire a competitor, or subcontract production. The company believes the product will either experience high market demand or low market demand. The following payoff table describes the company's decision situation. States of Nature Decision High Demand Low Demand Expand Facilities $2,000,000 -$1,250,000 Acquire Competitor $750,000 -$500,000 Subcontract Production $250,000 $25,000 The best decision for Kallie Inc. using the maximax decision criterion is to
A. subcontract production. B. acquire competitor. C. select high demand. D. expand facilities.
2. Companies that compete on ______________ recognize the advantages of time-based competition.
A. flexibility
B. cost
C. quality
D. speed
3. Over the course of a day, fans pour into a NASCAR venue at the rate of 8,000 people per hour. The rate at which fans leave the venue:
a) must be less than 8,000 people per hour
b) must be exactly 8,000 people per hour
c) must be more than 8,000 per hour
d) could be more or less than 8,000 people per hour
4. The ____________ function helps strategy evolve by creating new ways of delivering a firm's competitive priorities.
A. marketing B. None of the answer choices is correct. C. finance D. operations
5. The efficient frontier is given by the cheapest company in the industry.
True or False
6. There can be no more than two firms on the efficient frontier.
TRUE OR FALSE