The McDonald's restaurants in Russia grow their own potatoes to guarantee that they are grown correctly. Growing potatoes is very different from running a fast-food restaurant. One could say of McDonald's decision to grow its own potatoes for the Russian franchise that
a. the bounded rationality criterion outweighs the need for quality control
b. the bounded rationality criterion is outweighed by the need for quality control
c. both bounded rationality and the need for quality control are factors that make it rational for McDonald's to grow its own potatoes
d. growing potatoes is irrational
e. there must not be many potato suppliers in Russia
B
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A) 0.25 motorcycles B) 4 motorcycles C) 12 motorcycles D) 16 motorcycles
A person goes to college to become an engineer. This is an example of an
A) investment in physical capital. B) investment in human capital. C) increase in entrepreneurship. D) increase in labor.
Refer to the above figure for the corn market. The government wants to set an effective price support in the corn market. To be effective the price should be set
A) below P1. B) at P1. C) at P2. D) at P3.
All Pittsburgh police officers must go through the same training program, but police officers assigned to the narcotics squad earn 10% more than police officers assigned to guard the city courthouse. This 10% difference in pay is an example of a
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