2. Why is knowing (or estimating) the product demand so crucial for a firm? In the response, include an example of a business that has suffered from poorly estimating the demand of its products. Evaluate how or why the business made such a mistake.
3. Honda uses flexible plants in the manufacturing of its cars. Discuss whether this method of production results in optimum output. See the article on this page for the info: http://online.wsj.com/article/SB122211673953564349.html
4. Discuss whether economies of scale have any relevance to such companies as Wal–Mart.
5. In the hope of high returns, venture capitalists provide funds to finance new (start up) companies. However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits. Among different market structures, which one do you believe provides the highest possible return for a new company and why?
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