Describe the market structure of the beverage industry. What will be an ideal response? ANSWER The beverage industry is a highly competitive one, which is experiencing rapid rates of growth due to changes in taste and preferences of the population. The change in demographics as well as in the socio-economic profile of the population […]
Refer to the production function. The total product at 4 units equals ________ units. Fill in the blank(s) with correct word ANSWER Substituting 4 for X, we get Y= 10 (4 ) + 20 (4 )2 – (4 )3 we obtain Y = 40 + 320 – 64 = 360 – 64 = 296 […]
Amy received her wage based on her working hours in the grocery store. The work contract she signed is an example of a A) fixed-fee contract. B) hire contract. C) contingent contract. D) sharing contract. ANSWER B
What are the main factors driving the food companies to change their product lines in the beverage industry and how has the industry responded? What will be an ideal response? ANSWER America today is different than what it was a few decades ago. It’s much more diverse in ethnicity and socio-economic composition, the percentage […]
Alex is hired as a sales agent and receives 10% commission on the sales price. The contract he signed is a A) fixed-fee contract. B) hire contract. C) contingent contract. D) sharing contract. ANSWER D
The demand curve is given by: QD = 5000 – 10 P Find equations for: a. Total revenue b. Marginal revenue ANSWER a. TR = P ∗ Q = (500 – 1/10 Q)Q = 500Q – 1/10 Q2 b. MR = 500 – 1/5Q
In a company, if high-ability workers get paid $80,000, while low-ability workers get paid $50,000, the education (MBA) that can qualify the workers as high-ability ones cost $20,000. What’s the highest share of high-ability workers to get a separating equilibrium? A) 1/4 B) 1/3 C) 1/2 D) 1 ANSWER B
Which of the following best describes the entire U. S. refreshment beverage market? A) monopoly B) oligopoly C) monopolistic competition D) perfect competition ANSWER C
If an employer cannot distinguish the ability of workers, a separating equilibrium will result. Indicate whether the statement is true or false ANSWER False. When an employer cannot distinguish the abilities of the workers, the employer will pay all workers an average wage. This is a pooling equilibrium.
Demand in the refreshment beverage market has been changing due to A) changes in income. B) changes in taxes and subsidies. C) changes in the number of buyers. D) changes in tastes and preferences. ANSWER D
