Asked by Ogechi Enweremadu on May 21, 2024
Verified
As flexibility is increased,
A) the marginal benefit of additional flexibility is decreased.
B) the marginal benefit of additional flexibility is increased.
C) the total cost of flexibility is decreased.
D) the total flexibility is decreased.
Marginal Benefit
The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.
Flexibility
The ability of a system, process, or entity to adapt effectively to changes or variability in its environment or operation.
- Gain insight into the importance of flexibility in the supply chain to address demand fluctuations and supply disruptions.
Verified Answer
MH
Marissa HinojosMay 21, 2024
Final Answer :
A
Explanation :
The law of diminishing marginal returns states that as more of a variable input is added to a fixed input, the marginal benefit of each additional unit of the variable input will decrease. In the case of flexibility, as more flexibility is added, the marginal benefit of each additional unit of flexibility will decrease, leading to answer choice A.
Learning Objectives
- Gain insight into the importance of flexibility in the supply chain to address demand fluctuations and supply disruptions.