You Own a Building That Has Four Possible Uses: an Internet

question 17

Multiple Choice

You own a building that has four possible uses: an Internet cafe,a coffee store,an ice cream store,and a bookstore.The value of the building in each use is $2,000; $3,000; $4,000; and $5,000,respectively.You decide to open an ice cream store.The opportunity cost of using this building for an ice cream store is

• A) $2,000, the value if the building is used as an Internet cafe.
• B) $3,000, the value if the building is used as a coffee store.
• C) $3,333, the average of the values if the building is used for either an Internet cafe, a coffee store, or a bookstore.
• D) $5,000, the value if the building is used for a bookstore.

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Definitions:

Network Design

Network Design in supply chain management involves the strategic planning of a logistics network to optimize the flow of goods, information, and resources.

Chained Network

A complex series of interconnected nodes or entities, typically describing a logistics or delivery network.

Supply Disruptions

Interruptions in the flow of goods and materials from suppliers, which can impact production and distribution.

Demand Fluctuations

Variations in the level of demand for goods or services over time, often influenced by seasonal patterns, market trends, or economic factors.