Wendy's restaurant must decide whether to grow its own potatoes for French fries or procure them from suppliers.However,growing potatoes is a very different process from running a fast food restaurant.Based on this information alone,should Wendy's grow its own potatoes?

Question

Quizplus · Accepted Answer

Wendy's managers likely have expertise in running a fast-food restaurant, not in agriculture. Bounded rationality suggests they have limits to their knowledge, skills, and abilities, making it inefficient for them to venture into potato farming, a field far removed from their core business.

Wendy's Restaurant Must Decide Whether to Grow Its Own Potatoes