How Is the Economic Perspective Reflected in Lines for Fast

question 56

Multiple Choice

How is the economic perspective reflected in lines for fast food?

• A)Customers select the shortest line because they have perfect information.
• B)Customers select the shortest line because they believe it will reduce their time cost of obtaining food.
• C)Lines will typically be of unequal length because of the inefficiencies in counter service.
• D)The set of food choices is often too complex for most customers and thus creates long lines.

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Definitions:

Equity Multiplier

A financial leverage ratio that measures the proportion of a company's assets that are financed by its shareholders' equity.

Total Assets

The sum of all resources owned by a company, valued in monetary terms, which includes both current and non-current assets.

Total Common Equity

The total of equity capital and retained earnings in a company, signifying the stake held by common shareholders.

Equity Multiplier

A financial ratio that measures a company's total assets financed by its stockholders' equity, demonstrating leverage.