Madeleine Allows Herself $100 Per Month for Purchasing Coffee

question 22

Multiple Choice

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her in each month. FIGURE 1-3 Refer to Figure 1-3.If Madeleine chooses to allocate all $100 to buying lattes,we can say that her opportunity cost in one month is

• A)zero because she bought what she desired.
• B)zero because she stayed within her budget.
• C)80 cups of regular coffee.
• D)40 cups of regular coffee.
• E)20 cups of regular coffee.

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Definitions:

Resources-Based View

A strategic framework that emphasizes the importance of internal capabilities and resources in gaining competitive advantage.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, often through unique resources, capabilities, or positioning.

Transactional Activity

Transactional Activity refers to the routine, day-to-day operations and transactions within an organization, such as payroll processing and record-keeping.

Human Capital

The value of an individual’s competencies and capabilities, which is considered an asset to an organization’s performance and efficiency.