q2fall07solution

q2fall07solution - OTM 350 Quiz 2 October 5, 2007...

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OTM 350 Name______________________ Quiz 2 October 5, 2007 Discussion  #_________________ TRUE/FALSE (1 point each) T F 1. Design capacity is rarely attainable in practice. T F 2. Static economies of scale in a factory are the result of  learning that takes place over time as production experience  accumulates.  T F 3. Increasing bureaucracy and distribution costs may result  when a facility is too large.   T F 4. For service facilities, experience has shown that they will be  most profitable when operating at close to 100% capacity.  T F 5. If a decision-maker is indifferent between a gamble with an  expected payoff of $5 and a guaranteed payment of $5,  then for this scenario the decision-maker is risk-seeking.    T F 6. A construction contractor that buys flood insurance for a  particular project is employing the risk response strategy of  mitigating risk.   T F 7. According to our guest speaker, risks associated with bad 
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q2fall07solution - OTM 350 Quiz 2 October 5, 2007...

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