Read the case study for Activity 3 in the text. "The Audio-Electronic Roller Coaster". Given what we learned in this chapter on the behavior of variables over time, how could AudioMax Corp. reduce their cycles of "ups and downs" and maintain a consistent rate of profitability?
1. What was the long-standing, chronic problem facing AudioMax Corp.?
2. What two variables fed the initial steady growth in demand from AudioMax's customers?
3. Once AudioMax went public, what variable limited its ability to continue handling the growth in demand?