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:

Expense Ratio

A measure depicting the percentage of a fund's assets that are used for administrative and other operating expenses, directly affecting investors' returns.

Mutual Fund

An investment company pooling and managing funds of investors.

Significant Leverage

Utilization of borrowed money or financial instruments to increase the potential return of an investment.

Hedge Funds

Investment funds that use advanced strategies, including leverage, derivatives, and short selling, aiming for high returns.