Dave,a Student Who Knits Ski Caps with Tassels and Sells

question 96

Multiple Choice

Dave,a student who knits ski caps with tassels and sells them on the Quad,sells the same number of caps this year as last year,but at 20 percent higher prices.Which of the following statements is correct?

• A)Dave must be better off than last year because his income is higher.
• B)Dave cannot be better off than last year because he sold the same number of caps both years.
• C)We do not have enough information to determine whether Dave is better off this year than last year.
• D)Dave is better off this year only if there was no inflation over the past year.

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Definitions:

Job Enrichment

Designing or redesigning a job by incorporating motivational factors into it.

Differentiation

A strategy or process that involves making a product or service distinct from those of competitors, often through innovation or quality improvement.

Differentiation

The process or strategy of making a product, service, or organization distinct from competitors in the eyes of consumers.

Departmentalizing

The process of dividing an organization into different departments, which allows for specialization of tasks and easier management.