OM Chapter 1 T/F

If shipping company A offers longer delivery times than shipping company B and has higher delivery costs then it ____ on the efficient frontier.

is NOT

For a given level of revenue, the higher the costs the _____ the profit.

lower

Customers with different preferences for the same type of good are in different

market segments

Determining customers wants and preferences is the primary function of:

marketing

How far you have to drive to the store to buy an item impacts the consumption utility you associate with it.

False

Price of an item impacts the consumption utility you associate with it?

False

Subway and McDonalds have the same capabilities?

False

Suppose a new restaurant, John's Burgers, offers better tasting food that is custom-made, take less time to prepare, and cost less than what McDonald's offers. John's Burgers:

Pareto dominates

Which expenses are included in the price?

Shipping, Financing

A pizza delivery chain offering a 30-minutes or less guarantee on their pizza orders impacts the inconvenience component of utility.

True

An online retailer offering same-day shipping impacts the inconvenience component of utility.

True

Companies seeking external help with managing and improving their operations often hire:

consulting companies/firms

Firm capability is defined as the dimensions of the

consumption utility function it is able to satisfy

Economic theory suggests that a consumer's choice of a good or service is based on where he or she expects to achieve the highest:

utility

___ is the inhibitor that corresponds to changes in either demand or supply.

variability