Temblador Corporation Purchased a Machine 7 Years Ago for $319,000

question 41

Multiple Choice

Temblador Corporation purchased a machine 7 years ago for $319,000 when it launched product E26T. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 330 machine costing $323,000 or by a new model 230 machine costing $285,000. Management has decided to buy the model 230 machine. It has less capacity than the model 330 machine, but its capacity is sufficient to continue making product E26T. Management also considered, but rejected, the alternative of dropping product E26T and not replacing the old machine. If that were done, the $285,000 invested in the new machine could instead have been invested in a project that would have returned a total of $386,000.
-In making the decision to buy the model 230 machine rather than the model 330 machine,the sunk cost was:

• A)$319,000
• B)$386,000
• C)$285,000
• D)$323,000

Recognize the foundational role of understanding audience needs in successful marketing messages.

Appreciate the distinctive needs of mobile and social media marketing strategies.

Understand ethical concerns and legal requirements in marketing, including privacy, truthfulness, and deceptive practices.

Grasp the dynamic of engaging and building trust with the audience through ethical persuasion and transparency in marketing practices.

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Definitions:

The Wealth of Nations

A seminal book by Adam Smith that laid the foundations of classical economics, emphasizing free markets, the division of labor, and the function of self-interest in commerce.

Free Economy

An economic system where transactions are under the control of private owners for profit rather than by the state.

Utilitarianism

A theory in normative ethics holding that the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Greatest Good

A concept often associated with utilitarianism, suggesting that actions are right if they benefit the majority, promoting the most happiness or least harm.