1. Why does Toyota manufacture cars with only enough inventory to last for several hours while Soviet (today's Russia) industries had enough inventory to last a year?

2. Why do American manufacturers if computers or TVs tend to have them transported by others while Chinese manufacturers tend to transport them themselves?

3. Advertising, even when it is successful, can be considered to be a benefit only to those who advertise, but of no benefit to consumers. After all, consumers pay for the costs of advertisements in the final price of the goods/services they buy. Evaluate and explain.

4. Why are retired people able to get much lower priced travel (ex. planes, cruise ships, etc) than others? Explain the economic reasons for this.

5. Why would luxury hotels charge lower rates than economy hotels in the same city?

Key Points: Make sure you know/understand the difference between profits and profit rates, how profits are incentives, the meaning of scale (both economies of and diseconomies of), and how organizations "pass on" costs and savings.