To Compete in the Automobile Market, Toyota Must Make Many

Multiple Choice

To compete in the automobile market, Toyota must make many strategic decisions, such as whether to introduce a new car model, whether to produce alternative-fuel vehicles, and where to advertise.At Toyota's Cambridge, Ontario plant, managers must decide on the monthly production quantities of their Corolla, Matrix, Rav4, and Lexus RX 450h models.In making these decisions, the managers

A) face no trade-offs because the Cambridge plant only produces these four models of the many Toyota models produced worldwide.
B) face trade-offs, because producing more of one model means producing less of the others.
C) will choose to only produce the quantity of Corolla, Matrix, Rav4, and RX 350 models where marginal cost equals zero.
D) will always decide on production quantities at which revenues are maximized.