Krispy Kreme Is a Relatively Small Doughnut Seller

question 112

Multiple Choice

Krispy Kreme is a relatively small doughnut seller. It has only 292 stores in the United States, while Dunkin Donuts has 3,600 outlets. The company originated in Winston-Salem, North Carolina, where it still operates a plant that fills a 50-pound bag with doughnut mix every seven seconds. It recently opened a new plant in Effingham, Illinois, that fills a bag every three seconds. This second plant allows the company to reduce costs while increasing its output. The company began in the mid-1930s when Vernon Rudolph bought a secret recipe for yeast doughnuts from a French pastry cook. Rudolph ran the company until his death in 1973.
-Refer to Krispy Kreme. As the CEO of Krispy Kreme, Rudolph would have been responsible for:

• A) developing employees' commitment to the company
• B) creating a positive organizational culture
• C) monitoring the business' environment
• D) creating a context for change
• E) doing all of these things

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Definitions:

Marginal Product Curve

A graphical representation that shows how the addition of one more unit of a resource to production affects the output of a product.

Total Product Curve

A graphical representation showing how the total quantity of output varies with changes in the quantity of a single input while other inputs are held constant.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as production increases.

Average Product

The output per unit of input, such as the quantity of goods produced per worker, used to measure productivity.