When faced with seasonal demand,a firm should use a combination of pricing (to manage demand)and production and inventory (to manage supply)to improve profitability.

Question

Quizplus · Accepted Answer

By using pricing strategies to manage demand, a firm can ensure that they are able to sell their products at a higher price during periods of high demand. At the same time, they can use production and inventory management to ensure that they are able to meet this higher demand without losing too much in terms of production costs. By combining these strategies, a firm can improve their profitability even during times when demand fluctuates.

When Faced with Seasonal Demand,a Firm Should Use a Combination