The Marketing Manager of ToyBiz Indicated That Due to Manufacturing

question 92

Multiple Choice

The marketing manager of ToyBiz indicated that due to manufacturing efficiencies and market buzz, a new toy they were about to launch was likely to generate revenue beyond original projections. The lead designer reported that lab tests showed a risk that the toy could malfunction, possibly injuring a user, but that the design met required industry standards. By deciding to launch the toy as designed, what criterion of decision making were company executives ignoring?

• A)economic feasibility
• B)practicality
• C)ethicalness
• D)legality
• E)functionality

Identify the role of market elasticity in determining the deadweight loss and tax revenue.

Understand the change in consumer and producer surplus due to taxes.

Comprehend the relationship between tax size, tax revenue, and deadweight loss.

Understand how a government-imposed tax affects consumer surplus, producer surplus, and total surplus.

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Definitions:

Infundibulum

The funnel-like end of the uterine tube near an ovary. It catches the secondary oocyte as it leaves the ovary.

Vestibular Glands

Glands located near the vaginal opening that provide lubrication, also known as Bartholin's glands.

Bulbourethral Gland

A small gland in males that produces a fluid to lubricate and neutralize the acidity of the urethra prior to ejaculation.

Prostate Gland

A gland in the male reproductive system that surrounds part of the urethra and produces a fluid that forms part of semen.