Table 3-10 Juanita and Shantala Run a Business That Programs and Tests

question 389

Multiple Choice

Table 3-10
Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.

-Refer to Table 3-10.Juanita's opportunity cost of testing one cellular phone is programming

• A) 0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones.
• B) 0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones.
• C) 7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones.
• D) 7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones.

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Definitions:

Manufacture of a Product

The process of producing goods through the combination of labor, machinery, and processing or assembly operations.

Competitive Advantage

A condition that enables a company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with, resulting in benefits such as higher sales or margins and/or a larger market share.

Public Relations

The professional practice of managing and shaping the public perception of an individual, organization, or brand through media, communication, and strategic messaging.

Strategic Marketing

The process of planning and executing activities that aim to achieve a sustainable competitive advantage by understanding customer needs and market trends.