Which of the Following Is a Major Disadvantage of Setting

question 47

Multiple Choice

Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good?

• A) Compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line.
• B) Waiting in line imposes a cost on the consumer; paying higher prices does not.
• C) Both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output.
• D) Waiting in line benefits consumers at the expense of producers.

Understand the basic strategies companies can adopt for competitive advantage.

Identify the primary and support activities in a firm's value chain.

Grasp the impact of technology on business operations and competitive strategies.

Comprehend the difference between effectiveness and efficiency in organizational processes.

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Definitions:

Normally Distributed

A statistical distribution that is symmetrical about the mean, where most observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Parameters

In statistics, parameters are numerical characteristics of a population, such as its mean or standard deviation.

Independent

In a statistical context, refers to variables or events that are not influenced by other variables in a study; their occurrence does not depend on another.

ANOVA Table

A tabular representation used in the analysis of variance to summarize the sources of variation among group means.