Asked by Danique Mcfarlane on Jul 16, 2024
Verified
Which of the following is NOT an example of ways in which microeconomic analysis can help Toyota Motor Corporation in its corporate decision making?
A) Forecasting demand for new automobiles
B) Determining how many automobiles to produce in order to maximize profits
C) Predicting how competitors will react to the firm's pricing strategy
D) Forecasting the effect of Toyota's hiring patterns on the U.S. unemployment rate
E) Forecasting the effect of an oil price increase on demand for hybrid autos
Microeconomic Analysis
The study of economic behaviors of individuals, households, and firms, focusing on market mechanisms and price formations.
Corporate Decision Making
The process by which business leaders make choices that affect the company’s operations, profitability, and strategic direction.
Toyota Motor Corporation
A multinational automotive manufacturer headquartered in Japan, known for producing a wide range of vehicles.
- Understand the role of microeconomic analysis in business decision-making processes.
Verified Answer
SP
Shykecema PaigeJul 16, 2024
Final Answer :
D
Explanation :
Microeconomic analysis can help with internal corporate decision making such as forecasting demand, production decisions, and pricing strategies. However, it cannot accurately predict external factors such as the effect of Toyota's hiring patterns on the U.S. unemployment rate, which is determined by macroeconomic factors.
Learning Objectives
- Understand the role of microeconomic analysis in business decision-making processes.