Donny, of donny's doughnuts, bakes and sells 100 dozen doughnuts a day using one mixer and one fryer. his rival, sunshine, of sunshine's doughnuts, produces 180 dozen doughnuts a day using two mixers and two fryers. both shops use the exact same technology to make doughnuts and have the same number of workers and the same size building. donny and sunshine both increase their capital equipment by one mixer and one fryer.

Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes

Which of the following is a characteristic that can be used to guide the design of service systems? a. services cannot be inventoried. b. services are all similar. c. quality work means quality service. d. services businesses are inherently entrepreneurial. e. even service businesses have internal services.

Which of the following is a competitive benefit experienced by the first mover firm in an industry? a. the first mover will be able to achieve a less steep learning curve. b. the first mover will be able to reduce the switching costs. c. the first mover will not have to patent its products or technology. d. the first mover will be able to reduce costs through economies of scale.