The Owner of Tastee Cookies Needs to Decide Whether to Lease

question 25

Multiple Choice

The owner of Tastee Cookies needs to decide whether to lease a small, medium, or large new retail outlet. She estimates that monthly profits will vary with demand for her cookies as follows: $\begin{array}{|l|l|l|l|}\hline\text {SIZE}\\\text {OF}&\text {DEMAND}\\\hline \text { OUTLET } & \text { LOW } && \text { HIGH } \\\hline \text { Small } & \$ 1,000 && 1,000 \\\hline \text { Medium } & 500 && 2,500 \\\hline \text { Large } & 0 && 3,000 \\\hline\end{array}$ For what range of probability that demand will be high, will she decide to lease the small facility?

• A) 0-.25
• B) 0-.33
• C) .25-.5
• D) .33-1
• E) .5-1

Apply the decision-making process to personal and organizational contexts.

Understand the impact of information technology on the workplace and organizations.

Recognize the influence of risk, certainty, and uncertainty on decision making.

Understanding the conceptualization and three pillars of sustainable development from the 1992 Earth Summit.

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Definitions:

Picketing

A form of protest or demonstration by workers, often involving carrying signs and marching at the workplace's entrance, aimed at drawing public attention to issues like unfair labor practices.

Mainstream Economics

The body of economic thought and theory that is widely accepted and taught across major universities and colleges, focusing on market equilibrium, demand and supply, and the role of government interventions.

Wagner Act

Another name for the National Labor Relations Act of 1935, which established the legal right for workers to form unions and engage in collective bargaining in the United States.

Monopoly Power

The ability of a company or entity to control or dominate an industry or sector, making it the primary or sole provider, often leading to limited competition and higher prices for consumers.