Let K = Search Costs, P₂ = the Second Possible

question 10

Multiple Choice

Let K = search costs, P₂ = the second possible price for an iPhone, and E(P) = the average iPhone price in the market. If K < P₂ < E(P) , then the decision maker's opportunity cost of time is

• A) normal
• B) high
• C) astronomical

---

Definitions:

Repetitive Focus

A manufacturing strategy that concentrates on producing a limited range of products in high volume, aiming for efficiency and cost reduction.

Seasonal Bus Pass

A pass allowing unlimited travel on buses for a specific season or period, often at a discounted rate.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.