Wendy's Restaurant Must Decide Whether to Grow Its Own Potatoes

question 80

Multiple Choice

Wendy's restaurant must decide whether to grow its own potatoes for French fries or procure them from suppliers.However,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 are very few potato suppliers.
• D)Yes, because there are a few potato suppliers.
• E)No, because potatoes are traded in a perfectly competitive market.

---

Definitions:

19th Century

The period from January 1, 1801, to December 31, 1900, characterized by industrialization, colonization, and significant cultural and technological advancements.

20th Century

A period extending from January 1, 1901, to December 31, 2000, marked by significant technological, social, and political changes worldwide.

Federal Spending

Expenditures made by the government of a country on national-level services and projects.

Medicare

A federal health insurance program in the United States for people aged 65 and older, certain younger people with disabilities, and people with End-Stage Renal Disease.