Chanel Has the Option of Purchasing One of Three Products

question 126

Multiple Choice

Chanel has the option of purchasing one of three products: Brand A, Brand B, or Brand C.The price of each product is $10.If Chanel decides to purchase Brand A, the opportunity cost of this decision is

• A)$20.
• B)Brand B and Brand C.
• C)zero if this is a frivolous purchase with no marginal benefit.
• D)Brand B or Brand C, depending on which she considers to be the highest- valued alternative forgone.
• E)Brand A.

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Definitions:

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value, representing elements like reputation, brand, intellectual property, and commercial secrets.

Routine Inquiry

Routine inquiry represents the regular and standardized requests for specific information, typically utilized in corporate and academic fields for clarity and efficiency.

Goodwill

The positive reputation and relationship a business cultivates with its stakeholders, contributing to customer loyalty and long-term success.

Cost Estimates

Predictions or approximations of the expenses associated with a project, task, or purchase, often used in budgeting and planning.