Inexpensive production methods should be used for unpredictable demand while more expensive production methods should be used for stable demand.

Question

Quizplus · Accepted Answer

Inexpensive production methods are often more flexible and suitable for unpredictable demand, allowing for adjustments without significant losses. Expensive production methods, typically involving higher fixed costs, are better suited for stable demand where output levels are predictable and consistent, ensuring the high initial investment is justified by steady sales.

Inexpensive Production Methods Should Be Used for Unpredictable Demand While