Wendy's Must Decide Whether to Grow Its Own Potatoes for French

question 103

Multiple Choice

Wendy's must decide whether to grow its own potatoes for French fries.Growing potatoes is a very different process from running a fast-food restaurant.Based on this information alone, should Wendy's grow its own potatoes?

• A)No, because Wendy's managers have bounded rationality.
• B)Yes, because Wendy's managers have bounded rationality.
• C)No, because there is a small number of potato suppliers.
• D)Yes, because there is a small number of potato suppliers.
• E)No, because it is easy to observe the quality of potatoes.

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Definitions:

Tropical Climate

A non-arid climate characterized by consistent high temperatures throughout the year, usually found within 23.5 degrees north or south of the equator.

Organic Debris

Organic matter, such as leaves, twigs, and other plant or animal material, that has accumulated in a natural environment.

Calcium Carbonate

A chemical compound with the formula CaCO3, commonly found in rocks as the minerals calcite and aragonite and is the main component of pearls and the shells of marine organisms.

Clay

1. Any fine-grained sedimentary particle that is finer than 1/256 mm. 2. A family of finely crystalline, hydrous-silicate minerals with a two- or three-layered crystal structure.