A Company Decides to Close Down Its Plastics Division

question 58

Multiple Choice

A company decides to close down its plastics division.It has on hand 20 tons of styrene monomer,a raw material that has a market price of $700 per ton,which had been originally purchased at $650 per ton.Given that the company has no use for the styrene monomer,and that it would cost the company $5000 to store it,what is the value of the 20 tons of styrene monomer to the company?

• A)-$5000
• B)$0
• C)$13,000
• D)$14,000
• E)$19,000

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Definitions:

Reciprocity Principle

A social psychology concept stating that people are more likely to comply with a request from someone who has previously done something for them.

Lecture Notes

Written or typed summaries of the important points covered during a lecture.

Cognitive Dissonance

The discomfort in one's mind caused by holding multiple inconsistent beliefs, ideas, or values concurrently.

Attitude Change

A process in which an individual's general feelings, beliefs, or position on an issue evolve or are altered.