Final answer:
All the measures listed can be used to manage volatility in industrial demand. Strategies include adjusting production levels, flexible pricing, diversifying products, and operational adaptability in terms of facilities and labor force.
Step-by-step explanation:
Measures to manage volatility in industrial demand in the domestic market include a variety of strategies. One such strategic approach is to expand or reduce production based on current demand, which allows for adaptability in supply and helps stabilize the market. Another tactic involves implementing flexible pricing strategies, enabling the business to adjust prices in response to market fluctuations, enticing customers, and managing demand levels effectively. Additionally, businesses can diversify product offerings, which helps spread risk and can stabilize revenue streams even when demand for specific products may be volatile.
Effective management of volatility in industrial demand also requires operational flexibility, such as the ability to open new factories or sales facilities or conversely, close them in response to changing market situations. This operational flexibility extends to labor, where the firm might need to hire workers or to lay them off in alignment with production requirements. Furthermore, companies can also opt to start selling new products or stop selling existing ones to adjust to new market trends or shifts in consumer preferences.
Therefore, the answer to the student's question is 4) All of the above.