BUSI 411 Exam 2
Question 1
3 out of 3 points
If the output rate is increased but the average unit costs also increase, we are
experiencing:
Selected Answer: diseconomies of scale.
Response correct
Feedback:
MC Qu. 54 If the output rate is increased but the...
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 05-06 Discuss the major considerations
related to developing capacity alternatives.
Topic: Developing Capacity Strategies
Question 2
3 out of 3 points
The owner of a greenhouse and nursery is considering whether to spend $6,000 to
acquire the licensing rights to grow a new variety of rosebush, which she could
then sell for $6 each. Per-unit variable cost would be $3. If her available land has
design and effective capacities of 3,000 and 2,000 rosebushes per year,
respectively, and she expects to be 80 percent efficient in her use of this land,
how many rosebushes does Rose plan to grow each year on this land?
Selected Answer: 1,600
Response correct
Feedback:
, MC Qu. 70 The owner of a greenhouse and nursery is...
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 05-03 Describe ways of defining and
measuring capacity.
Topic: Defining and Measuring Capacity
Question 3
0 out of 3 points
Which of the following is the case where capacity is measured in terms of inputs?
Selected Answer: number of meals per day that can be served by a restaurant
Response incorrect
Feedback:
MC Qu. 25 Which of the following is the case where...
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe ways of defining and
measuring capacity.
Topic: Defining and Measuring Capacity
Question 4
3 out of 3 points
The owner of Firewood To Go is considering buying a hydraulic wood splitter
which sells for $50,000. He figures it will cost an additional $100 per cord to
purchase and split wood with this machine, while he can sell each cord of split
wood for $125. If, for this machine, design capacity is 50 cords per day, effective
capacity is 40 cords per day, and actual output is expected to be 32 cords per day,
what would be its efficiency?
Question 1
3 out of 3 points
If the output rate is increased but the average unit costs also increase, we are
experiencing:
Selected Answer: diseconomies of scale.
Response correct
Feedback:
MC Qu. 54 If the output rate is increased but the...
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 05-06 Discuss the major considerations
related to developing capacity alternatives.
Topic: Developing Capacity Strategies
Question 2
3 out of 3 points
The owner of a greenhouse and nursery is considering whether to spend $6,000 to
acquire the licensing rights to grow a new variety of rosebush, which she could
then sell for $6 each. Per-unit variable cost would be $3. If her available land has
design and effective capacities of 3,000 and 2,000 rosebushes per year,
respectively, and she expects to be 80 percent efficient in her use of this land,
how many rosebushes does Rose plan to grow each year on this land?
Selected Answer: 1,600
Response correct
Feedback:
, MC Qu. 70 The owner of a greenhouse and nursery is...
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 05-03 Describe ways of defining and
measuring capacity.
Topic: Defining and Measuring Capacity
Question 3
0 out of 3 points
Which of the following is the case where capacity is measured in terms of inputs?
Selected Answer: number of meals per day that can be served by a restaurant
Response incorrect
Feedback:
MC Qu. 25 Which of the following is the case where...
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Describe ways of defining and
measuring capacity.
Topic: Defining and Measuring Capacity
Question 4
3 out of 3 points
The owner of Firewood To Go is considering buying a hydraulic wood splitter
which sells for $50,000. He figures it will cost an additional $100 per cord to
purchase and split wood with this machine, while he can sell each cord of split
wood for $125. If, for this machine, design capacity is 50 cords per day, effective
capacity is 40 cords per day, and actual output is expected to be 32 cords per day,
what would be its efficiency?
