Tom Opens a Sandwich Shop; Which of the Following Is

question 100

Multiple Choice

Tom opens a sandwich shop; which of the following is NOT an economic cost (total cost) of running his business?

• A) his forgone earnings as a book editor, his next best opportunity for employment
• B) the interest income he could have earned on the money he invested in his business from savings
• C) the wages that he pays his workers
• D) the expenses for his own lunch every day

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Definitions:

Multidomestic Strategy

A marketing strategy where a company customizes its product offerings and marketing approach to suit different national conditions and preferences.

Differentiated Needs

The concept that individuals or groups have unique requirements or preferences that need specific attention or solutions.

Cost Leadership

A business strategy focused on achieving the lowest operational costs within an industry to offer lower prices than competitors.

Global Integration

The process by which a company combines different global activities so the different parts of the corporation use the same methods.