A Clothing Chain Is Considering Two Different Locations for a New

question 122

Multiple Choice

A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Barclay and Chester. What is the score for Barclay?

• A) 10.00
• B) 24.50
• C) 25.75
• D) 27.00
• E) 100.00

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Definitions:

Utility

A measure of satisfaction or happiness that consumers derive from consuming goods and services.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that give an individual equal satisfaction and utility.

Budget Constraint

The limitations on the spending decisions of consumers based on their income and the prices of goods and services.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.