The Next Three Questions Relate to the Following Scenario: Erica

question 7

Multiple Choice

The next three questions relate to the following scenario: Erica is planning a large surprise party for her best friend. She has developed the plan below which includes estimates of the time in hours) and cost necessary to perform each of the activities required.
$$\begin{array} { | l | c | c | c | c | c | } \hline \text { Activity } & \text { Predeces sor } & \begin{array} { c } \text { Normal } \\\text { Time } \\\text { (hrs) }\end{array} & \begin{array} { c } \text { Crash } \\\text { Time } \\\text { (hrs) }\end{array} & \begin{array} { c } \text { Norm al } \\\text { Cost }\end{array} & \begin{array} { c } \text { Crash } \\\text { Cost }\end{array} \\\hline \text { A. Create Guest List } & - - & 8 & 4 & \$ 200 & \$ 310 \\\hline \text { B. Send Invitations } & \text { A } & 2 & 1 & \$ 125 & \$ 150 \\\hline \text { C. Plan Decorations } & \text { A } & 8 & 6 & \$ 300 & \$ 370 \\\hline \text { D. Plan Menu } & \text { A } & 3 & 2 & \$ 150 & \$ 210 \\\hline \text { E. Shop } & \text { D } & 4 & 2 & \$ 475 & \$ 550 \\\hline \text { F. Prepare Food } & \text { E } & 5 & 3 & \$ 225 & \$ 475 \\\hline\end{array}$$

-Erica's internet-based business pays her about $40 per hour. Therefore, for every hour she works on this party project, she will experience a lost opportunity cost of $40. She would initially like to test the idea of reducing project duration by one hour. Which activity should she crash first?

• A) A
• B) D
• C) C
• D) E
• E) B

Comprehend the concept of optimal allocation of resources and how it is achieved.

Recognize the implications of specialization and trade on national and international levels.

Understand the significance of technological advancements and demographic changes on a nation's economic capabilities.

Differentiate between direct and indirect (opportunity) costs in decision making.

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Definitions:

Exergonic Reaction

A chemical reaction that releases energy through the process of work, typically characterized by a negative Gibbs free energy.

Activation Energy

The minimum quantity of energy that the reacting species must possess in order to undergo a specified reaction.

ATP

Adenosine triphosphate, a molecule that stores and transfers energy within cells, acting as a main energy currency.

Potential Energy

The energy stored in an object due to its position, composition, or condition, with the potential to cause changes when released.