Chapter 3 3. ED = [(1800 −1500)/(1800+1500)]/[(1.75 − 2.25)/(1.75 + 2.25)], so ED = −0.727 for Mmmm Sundaes. This is inelastic in this price range. It suggests the Olde Yoguart Factory should consider a price increase, as this will increase revenues and reduce costs. 4. a. ED = −30%/+100% = −0.3 is the price elasticity for subway rides. This is inelastic. b. Ridership probably would not return to the original level because some people may have invested in alternatives
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& Production Management, Vol. 33, Iss. 12. Forthcoming. Company-specific Production Systems and Competitive Advantage: A resource-based view on the Volvo Production System Torbjørn H. Netland1, 2 and Arild Aspelund1 1 Department of Industrial Economics and Technology Management, NTNU 2 McDonough School of Business, Georgetown University Abstract Purpose: In order to improve competitiveness on a global scale, multinational enterprises increasingly develop a company-specific Production
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Chapter 2: Operations strategy ........................................................................................................................... 12 Chapter 3: Supply network design...................................................................................................................... 19 Chapter 4: Process design 1 – positioning.......................................................................................................... 22 Chapter 5: Process design 2 – analysis
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