Author Question: Adopting a uniform menu across all sites provides the McDonald's Corporation __________ by spreading ... (Read 181 times)

futuristic · **on:** Jun 30, 2018

Adopting a uniform menu across all sites provides the McDonald's Corporation __________ by spreading the cost of menu development over a large output.
a. economies of scale
b. diminishing returns
c. constant returns to scale
d. rising marginal product
e. more flexibility

Question 2

Which of the following indicates that economies of scale have been overridden by other factors?
a. A company seeking to save on architect's fees during its move to Maryland copies the same building it used in San Francisco, so now it occupies the only office in Baltimore built to withstand earthquakes.
b. The workers on the night shift at the Roadkill Diner, having no customers of their own, peel 400 potatoes, fill 300 catsup bottles, fry 100 pounds of bacon, and brew 80 quarts of coffee for the morning shift.
c. Denny's Restaurant serves potatoes with its breakfasts nationwide, but in the South you can get grits instead.
d. The Creepy Critters Summer Camp decides not to give campers a choice between hamburgers and hot dogs but makes creamed chipped beef on toast for everybody.
e. Henry Ford said that his customers could have any color car they wanted, as long as they wanted black.