Multiple Choice QuestionWhich of the following best exemplifies a firm with excess capacity?Multiple choice question.A fast-food restaurant where customers never have to wait to place an order.An auto plant running three full shifts per day to meet customer orders.A convenience store with all its gas pumps in use and customers waiting to gas.A hotel with no rooms for the night.

Which of the following best describes a plant operating at capacity?Multiple ChoiceEvery machine and person in the plant is working at the maximum possible rate.Fixed costs will need to change to accommodate increased demand.Only some specific machines or processes are operating at the maximum rate possible.Managers should produce those products with the highest contribution margin in order to deal with the constrained resource.

Multiple Choice QuestionExcess capacity is best described as underused plant resources that are a result of Blank______.Multiple choice question.a firm distinguishing its products through design, related services, quality, or pricean industry in which the top four firms are monopolistically competitivea concentration of industry competitiveness combined with an increase in market sharea firm producing less output than what is associated with achieving minimum average total cost

Multiple Choice QuestionWhen Mary tried to get an appointment with a local dentist she was told that the earliest the doctor could see her was in three weeks. This may have been due to a lack of Blank______.Multiple choice question.excess capacityprovider resourcesmonopolistically competitive providersperfectly competitive firms

A fast-food outlet has the following cost structure.Monthly rent on the outlet building = $10,000Monthly wages of each staff = $1,000Let’s say the restaurant manager has three options.Option A: Hire 20 staff and serve 100 customers per dayOption B: Hire 40 staff and serve 180 customers per dayOption C: Hire 60 staff and serve 250 customers per dayWhich option should he choose? (Assume that his only objective is to minimise cost per customer served.)Option AOption BOption C

From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:Multiple Choicemanagement is exhibiting irrational behaviour by not maximizing profits.marginal cost of waiting is less than the marginal benefit of being served.management is making an assumption that other things are equal.marginal cost of waiting is greater than the marginal benefit of being served.