ch_11_key_review

ch_11_key_review - Ch 11 KEY REVIEW True-False Questions _...

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Ch 11 KEY REVIEW True-False Questions _____ 1. As plants produce more, they gain experience in the best production methods, which reduce their costs of production in a predictable manner. _____ 2. Every time a plant’s cumulative production doubles, its production costs increase by a specific percentage depending on the nature of the business. _____ 3. At some point, the size of a plant becomes too large and diseconomies of scale become a problem. _____ 4. If the firm does not have the technology to master multiple objectives, then a broad focus is a logical choice. _____ 5. Capacity flexibility means having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another. _____ 6. The capacity utilization rate measures the amount of output that a system is capable of achieving over a specific period of time. _____ 7. A capacity cushion is an amount of capacity in excess of expected demand. _____ 8.
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ch_11_key_review - Ch 11 KEY REVIEW True-False Questions _...

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