A firm practices a chase strategy.Production last quarter was 1000.Demand over the next four quarters is estimated to be 900,700,1000,and 1000.Hiring cost is $20 per unit,and layoff cost is $5 per unit.Over the next year,what will be the sum of hiring and layoff costs?
A)$500
B)$2,500
C)$7,500
D)$7,000
E)$12,500

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The Answer of A firm practices a chase strategy.Production last quarter was 1000.Demand over the next four quarters is estimated to be 900,700,1000,and 1000.Hiring cost is $20 per unit,and layoff cost is $5 per unit.Over the next year,what will be the sum of hiring and layoff costs?
A)$500
B)$2,500
C)$7,500
D)$7,000
E)$12,500

A Firm Practices a Chase Strategy