Steven managed an auto parts store in the 1990s. at that time, stock-outsâfailure to have the parts auto mechanics needed to do their work that dayâincreased the likelihood of the mechanics becoming customers of competing auto supply stores. to avoid this problem and keep his business customers, steven most likelya. canceled orders and shifted the business to competitors. b. increased promotional outlays to overcome customer dissatisfaction. c. used exclusive geographic territories to reduce supply chain inefficiencies. d. stockpiled inventory, adding to the cost of providing auto parts. e. returned to traditional distribution center logistics.

Two firms, a and b, each currently emit 100 tons of chemicals into the air. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution emitted into the air. the government gives each firm 40 pollution permits, which it can either use or sell to the other firm. it costs firm a $200 for each ton of pollution that it eliminates before it is emitted into the air, and it costs firm b $100 for each ton of pollution that it eliminates before it is emitted into the air. after the two firms buy or sell pollution permits from each other, we would expect that firm a will emit a. 100 fewer tons of pollution into the air, and firm b will emit 20 fewer tons of pollution into the air. b. 20 more tons of pollution into the air, and firm b will emit 100 fewer tons of pollution into the air. c. 50 fewer tons of pollution into the air, and firm b will emit 50 fewer tons of pollution into the air. d. 20 fewer tons of pollution into the air, and firm b will emit 100 fewer tons of pollution into the air.