Kate's 24-Hour Breakfast Diner Menu Offers One Item, a $5

question 43

Multiple Choice

Kate's 24-Hour Breakfast Diner menu offers one item, a $5.00 breakfast special. Kate's costs for servers, cooks, electricity, food, etc. average out to $3.95 per meal. Her costs for rent, insurance cleaning supplies and business license average out to $1.25 per meal. Since the market is highly competitive, Kate should

• A) raise her prices above the perfectly competitive level set by the market.
• B) keep the business open in the short-run, but plan to go out of business in the long-run.
• C) keep the business open in the short-run, and plan to expand the business in the long-run.
• D) lay-off her staff, break her lease, and close the business down immediately.

Identify the significance of product availability and safety inventory in volatile demand scenarios.

Differentiate between periodic and continuous review policies regarding safety inventory levels.

Comprehend the relationship between safety inventory and desired product availability.

Understand the coefficient of variation as a measure of demand forecast uncertainty.

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Definitions:

South-Central Asia

A geographic region of Asia that typically includes countries such as India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, and sometimes Afghanistan and parts of Central Asia.

West Africa

A region located in the western part of the African continent, known for its diverse cultures, languages, and historical significance.

South America

A continent located in the Western Hemisphere, mostly in the Southern Hemisphere, with a wide diversity of cultures, ecosystems, and countries.

East Africa

A region in Africa that includes countries like Kenya, Tanzania, and Uganda, known for its diverse cultures, languages, and landscapes.