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:

Society's Resources

The total available assets, both natural and man-made, that are available for use by a society.

Marginal Benefit

The supplementary pleasure or utility a consumer experiences when an additional unit of a good or service is consumed.

Marginal Cost

The financial commitment needed to produce an additional unit of a product or service.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits you could have received by taking an alternative action.