The Economy and Production below and respond to the questions. Businesses are confronted with economic challenges that pertain to the business cycle. During expansionary periods, businesses are pressured to increase the number of variable inputs (such as employees and raw materials) to meet short-term demand. At some point, however, a company must consider expanding other factors of production (such as equipment). Managers can use capacity planning to meet economic challenges during the business cycle.

What could be three operational (short-term) challenges that Jim will need to plan for?
Response:

b. What could be three strategic (long-term) decisions that Jim could make to increase the rate of output during a prolonged expansionary period.
Response:

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.