Diversified firm produces computers branded

Assignment Help Operation Management

Reference no: EM132274012

1. Which of the following may contribute to diseconomies of scale? (*Multiple answers allowed*)

A) Increased worker specialization

B) Small firms joining purchasing groups

C) Too many machines in the factory increase risk of injury and drive up injury compensations and insurance fees

D) Performance-based pay that better aligns the interests of managers and shareholders

2. A diversified firm produces computers branded as LightSpeed Computers, and they also make tablets called LightSpeed Personal Assistants. Recently the new manager believes that the tablet business needs a new identity and decides to name the products as New Generation Personal Assistants. This change

A) Allows cross-promoting of two lines of products

B) Decreases economies of scale and/or scope from umbrella branding

C) Reflects bundling

D) Is called negotiated branding

3. A bottle making company recently adopted a batch of new production lines which are very expensive but could operate with much lower energy consumption and are also much more efficient on raw materials. While old production lines are operated by workers who are paid by piece-rate (paid by how many bottles they produce), the new production lines are fully automated so no workers are needed. Adoption of new production lines is best summarized as:

A) Adoption of new technology with high fixed cost; effect on variable cost remains ambiguous

B) Adoption of new technology with high fixed cost; variable cost remains constant

C) Adoption of new technology with high fixed cost and high variable cost

D) Adoption of new technology with high fixed cost but low variable cost

4. A learning curve describes relationship between production experience and time needed to produce a unit likely slopes downward. Which of the following factors will like produces a steeper slope (i.e., efficiency can be achieved faster)?

A) Constantly hire new workers

B) Rotate workers to different production tasks

C) Increase worker specialization

D) Increase worker turnover

Reference no: EM132274012

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