Consider the Following Hypothetical Scenarios: Scenario A: You Are About

question 13

Multiple Choice

Consider the following hypothetical scenarios: Scenario A: You are about to purchase a pair of 7 for All Mankind jeans for $175 and a t-shirt for $45.The sales attendant at the store tells you that the pair of jeans you wish to buy is on sale for $160 at another store, located about a 20-minute drive away.
Scenario B: You are about to purchase a pair of 7 for All Mankind jeans for $175 and a t-shirt for $45.The sales attendant at the store tells you that the t-shirt you wish to buy is on sale for $30 at another store, located about a 20-minute drive away.
Based on standard economic theory, under which scenario would you make the 20-minute trip to the other store?

• A)Scenario B because a $15 saving amounts to a substantial discount (about 33 per cent)
• B)in either scenario if I think a $15 savings is worth the 20-minute trip
• C)in none of these scenarios if I think the $15 saving is not worth the 20-minute trip
• D)B and C are correct answers.

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Definitions:

Planning

The process of setting objectives, determining strategies, and outlining tasks and schedules to achieve the goals.

Managerial Efforts

The actions or initiatives taken by managers to achieve organizational goals.

Leadership

The act of guiding, directing, and influencing others towards the achievement of goals.

Planning

The process of defining an organization’s goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.