1. Andrew invested $200,000 in the shares of a company. At the end of a year, he had earned $7,000 as dividends on his shares along with a $1,000 appreciation in the overall value of his shares. However, if Andrew had invested the same amount on an asset, like gold, the appreciation in its value would have earned him $10,000 at the end of the year. In this scenario, which of the following is Andrew's opportunity cost?
A. $7,000
B. $10,000
C. $2,000
D. $200,000
2. Which of the following best explains why a blue ocean strategy is difficult to implement?
It requires the combination of fundamentally similar strategic positions—differentiation and low cost.
It requires the reconciliation of fundamentally different strategic positions—differentiation and low cost.
It requires the combination of fundamentally similar strategic positions—differentiation and strategic trade-offs.
It requires the reconciliation of fundamentally different strategic positions—differentiation and strategic trade-offs.
3. When the laptop market overtook the desktop market, Blue Tech Inc., a leader in desktop technology, was left at a competitive disadvantage. Later, Blue Tech Inc.'s management channeled all of the company's efforts and revenue to develop an efficient laptop from scratch in less than a year. However, the company failed because most of its competitors had already been in the laptop market for five years. Blue Tech Inc.'s models were inferior to the ones in the market. In this scenario, Blue Tech Inc.'s failure can be best attributed to
A. causal ambiguity.
B. diseconomies of scope and scale.
C. time compression diseconomies.
D. social complexity.