Shanghai Is a Chinese Restaurant in Manhattan That Recently Changed

question 50

Multiple Choice

Shanghai is a Chinese restaurant in Manhattan that recently changed its ingredients' supplier. The owner trusted the previous supplier to deliver authentic and fresh ingredients on short notice and completely avoided stocking up ingredients. However, the previous supplier defaulted in terms of quality and provided adulterated ingredients. Shanghai was concerned about losing its customers if the news of the adulterated ingredients spread and changed its supplier after a survey of potential suppliers to retain its credibility. Which of the following statements is true about this scenario?

• A) Shanghai did not practice just-in-time inventory to avoid supply shortages.
• B) Shanghai followed a new task purchase system with the previous supplier.
• C) Shanghai followed a modified rebuy system in moving to its new supplier.
• D) Shanghai did not consider any alternative suppliers before moving to its new supplier.

Distinguish between fiat currencies and cryptocurrencies.

Understand the role and mechanism of currency exchange in international trade.

Grasp the concept of floating and managed exchange rates.

Recognize the effects of economic policies and market movements on currency value.

---

Definitions:

Free Entry

A market condition where there are no barriers or restrictions preventing new competitors from joining the market.

Long-Run Profits

Long-Run Profits refer to the sustained earnings a firm can achieve over time, considering all input costs are variable and market conditions may change.

Fixed Costs

Costs that do not vary with the quantity of output produced

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not perfect substitutes, leading to competitive yet differentiated markets.