AAEC 3980 HW 1
Elasticity is:
%ΔQ÷1%Δ in P or I; %ΔQ / %ΔP; Either elastic, inelastic, or unitary; Change in quantity demanded to changes in prices and income
(T/F) A sustainable competitive advantage can come from being either the highest cost provider of a product or by offering a differentiated product.
False
(T/F) Consumer tastes and preferences have become more homogenous and predictable as a result of globalization.
False
(T/F) In the global agri-food system, the input sector and the processing/manufacturing sector supplement the production sector.
False
(T/F) The first step in making a decision is to determine the alternative courses of action to solve the problem.
False
(T/F) Total revenue decreases as a result of an increase in price when the elasticity of demand for a good is inelastic.
False
The controls in the controlling function of management should
Measure progress toward goals and alert management to serious deviations
The objective of the directing function of management is to:
Motivate and lead employees to accomplish the firm's goals via the other three functions of management
The elasticity effect on total revenue when the elasticity for a good is unitary elastic is:
Price rises, total revenue is unchanged
The four Ps of marketing in the marketing mix are:
Promotion, Price, Product, Place
There are nine marketing functions; of the following, which is not one of those functions? a)Market info c) Product b) Risk d) financing e)grades and standards
c) product
Consumers consume a variety of goods because of the economic principle of:
Diminishing marginal utility
The business plan is designed to:
Tell others the purpose and objectives of the firm; Give the firm its competitive edge; Help employees do a better job; Help the manager better understand what to do
(T/F) Factors that influence the demand for a product include its price, income, population, seasonality, tastes and preferences, and the prices of substitute and complement goods.
True
(T/F) The four utilities of marketing are form, place, time and possession utility.
True
(T/F) The long-run success of an agribusiness requires that they be the first choice of their customers, employees, and investors.
True
When given a choice, consumers will always select the item that gives them the highest satisfaction because of the economic principle of:
Utility maximization
Which of the following statements is not true: a) The transportation function overcomes the barrier of time separation b) Buying and selling functions overcome the barrier of ownership separation c) The grades and standards function overcomes the barrier of information separation d) Risk and storage functions overcome the barrier of time separation
a) The transportation function overcomes the barrier of time separation
Which of the following would be part of the business plan: a) A good pricing policy b) A multiple year financial plan c) Evidence of a thorough knowledge of customers d) discussion of firm's purpose and objectives
all
If the calculated cross price elasticity of yogurt parfait (yogurt with layers of granola and fruit) is -0.2, then: a) The cross price elasticity is inelastic d)all b) Granola is a complement to yogurt c) For each 1% increase in price of granola, yogurt sales decrease 0.2%
all
The global agri-food system consists of which of the following industries:
commodity processors, input suppliers, and food manufacturers
A firm's purpose and objective should include the following:
description of how the firm will gain its competitive edge in the marketplace
If the calculated price elasticity of granola is -1.5, then: a) The demand for granola is elastic b) The demand for granola is inelastic c) Granola is a normal good d)For each 1% increase in price, sales decrease by 1.5% e) all, except b
e) all except b
If the calculated income elasticity of granola is +1.0:
granola basic/normal good
There are nine marketing functions; of the following, which is not one of those functions? processing, transport, storage, promotion, buying and selling
promotion