Case-Based Critical Thinking Questions Case 1 - Horizon Cleaners

question 1

Multiple Choice

Case-Based Critical Thinking Questions Case 1 - Horizon Cleaners
Horizon Cleaners is an organic dry cleaner for clothing. The price for dry cleaning a shirt is $3.00, the price for pants is $3.50, and the price for dresses is $4.00. All clothes can be either washed or dry cleaned. Dry cleaned clothes can be hung or folded, and folded items cost an additional $0.50 per item.
The secondary decision for assigning the fee for folded clothes is to determine ____.

• A) whether the customer is having a shirt, or pants, or a dress cleaned
• B) when the customer will pick up the clothes
• C) if the customer wants clothes hung or folded
• D) if the customer wants clothes washed or dry cleaned

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Definitions:

Externalities

Monetary consequences that reach beyond the primary parties, impacting others positively or negatively.

Tax

An essential fiscal demand or variant form of duty exacted from a taxpayer by a governmental institution, intended to sustain government expenditure and miscellaneous public financial requirements.

Externality

An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.

Activity

Any action or task undertaken by individuals or groups, often resulting in production or consumption of goods or services.