Performance threat is a situation in which something is obviously wrong or has the potential to go wrong.
Question:
Suppose the government has imposed a price ceiling on cellular phones. Which of the following events could transform the price ceiling from one that is binding to one that is not binding? a. Cellular phones become more popular. b. Traditional land line phones become more expensive. C. The components used to produce cellular phones become more expensive. @ A technological advance makes cellular phone production less expensive.
Answer:
.A technological advance makes cellular phone production less expensive.
Explanation:
Government could in consideration of the product's lower production cost, opt to adjust the price ceiling.
What's the rationale behind this?
The decrease in production cost for cellular phones means the industry can afford to produce and sell at lower price(maybe even lower) than the price ceiling. This would mean that businesses in this industry may be charging incredibly high prices compared to cost of production and still not hit price ceiling. Therefore government may need to lower price ceiling to suit current cost of production.
The Theory of Constraints (TOC) strives to reduce the effect of constraints by: offloading work from constrained workstations and increasing constrained workstation capability.
Answer: Option A and B
<u>Explanation:</u>
The Theory of Constraints (TOC) is a theory used to identify what plays an important role in limiting the progress towards achieving a goal. By implementing the theory, the problem is identified and eventually it is rectified such that it does not become a limitation for the process towards achieving the goal.
By implementing this theory, manufacturers can achieve goals not only in the long run but also in the short run. It strives to lowers the constraints effect by maximizing capability and offloading work of constrained workstation.
