Use the Information Below to Answer the Following Questions

question 72

Multiple Choice

Use the information below to answer the following questions.
Fact 11.3.1 A Pepsi, A Business Decision
PepsiCo has done a deal with 300 small Mexican farmers close to their two factories to buy corn at a guaranteed price. PepsiCo saves transportation costs and the use of local farms assures it access to the type of corn best suited to its products and processes. "That gives us great leverage because corn prices don't fluctuate so much, but transportation costs do," said Pedro Padierna, president of PepsiCo in Mexico.
Source: The New York Times, February 21, 2011
-Refer to Fact 11.3.1. Fluctuations in the price of corn and in transportation costs shift all of the following except the

• A)average variable cost, marginal cost, and average total cost curves.
• B)average fixed cost and total fixed cost curves.
• C)total cost curve.
• D)total variable cost curve.
• E)average fixed cost, marginal cost, and total fixed cost curves.

Grasp the concept of differential pricing and its implementation in revenue management.

Recognize the significance of maintaining service quality in revenue management strategies.

Understand the impact of effective sourcing processes on firm and supply chain profits.

Recognize the importance of supplier performance evaluation beyond just price.

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Definitions:

Eustachian Tube

A canal that connects the middle ear to the nasopharynx and helps equalize air pressure on both sides of the eardrum.

Auditory Tube

A canal that connects the middle ear to the nasopharynx, helping equalize air pressure on either side of the eardrum.

High-Frequency Deafness

A hearing impairment characterized by difficulty hearing sounds at higher frequencies, often affecting speech understanding.

Ototoxic

Having a toxic effect on the ear or its nerve supply, often referring to drugs or substances that can cause hearing loss or balance disorders.