To Open a New Business,a Manager Must Obtain a License

question 35

Essay

To open a new business,a manager must obtain a license from the city for $20,000.The license is transferable,but only $3,000 is refundable in the event the firm does not use the license.
a.What are the firm's fixed costs?
Sunk costs?
b.Suppose the manager obtains a license but then decides against opening the business.If another firm offers the manager $2,000 for the license,should the manager accept the offer?

Understand the Standard Communication Model and associated terminologies.

Identify various defense mechanisms and behavioral patterns.

Understand different ways to provide positive reinforcement.

Awareness of the role of perception in communication.