Chapter 6: Problem 5
Give a new example of a tautology.
Short Answer
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Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Chapter 6: Problem 5
Give a new example of a tautology.
These are the key concepts you need to understand to accurately answer the question.
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Get started for freeWhy might the objective to maximize profits be difficult to use at the plant level? What advantages, or disadvantages, are there to using “minimize unit cost” instead?
We have suggested net profit and return on investment as firm-level measures. Do these capture the essence of a healthy firm? What characteristics are not adequately reflected in these measures? Can you suggest alternatives?
How many consistent observations does it take to prove a conjecture? How many inconsistent observations does it take to disprove a conjecture?
How can the concept of “conjectures and refutations” be used in a practical problem-solving environment?
We have suggested Revenue (total quantity of good product sold per unit time) Operating expenses (operating budget of the plant) Assets (money tied up in plant, including inventories) as plant-level measures. How do these translate to the firm-level measures of total profit and ROI? Are there plant-level activities that are not reflected in the plant-level measures that affect the firm-level objectives? How might these be addressed?
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