Suppose a Chain of Convenience Stores Reorganized Its System of Supplying

question 145

Multiple Choice

Suppose a chain of convenience stores reorganized its system of supplying its stores with food. This led to a sharp reduction in the number of trucks that the company had to use and increased the amount of fresh food on store shelves. Which of the following statements best describes the chain stores' actions?

• A) The change implemented is not an example of technological change because it did not require the use of new machinery of equipment.
• B) Technological change refers only to the introduction of new products or improvements to existing product. As such, the scenario described in the question is not technological change.
• C) The firm is able to produce more output (increase its sales) using fewer inputs (less trucks). Therefore, the chain of convenience stores has implemented a positive technological change.
• D) The scenario described is an example of management efficiency and not technological change. Essentially, the chain changes its way of operating its business.

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Definitions:

Rational Choice Theory

A framework that assumes individuals act based on rational calculations to maximize their benefits and minimize their losses in any given situation.

James Coleman

An influential American sociologist known for his work on educational sociology and social theory.

Contemporary Exchange

Modern-day transactions or interactions, which can be economic, social, or cultural, reflecting current practices and values.

Rational Choice Theories

Rational choice theories are based on the premise that individuals make decisions by calculating the costs and benefits of various actions to maximize their personal advantage.