Gwendolyn manages a resort boutique. Her goal is to run this business in such a way that she achieves the desired result, making a profit and providing her customers with the items they need to enjoy their vacation. Thus, her primary managerial concern is .a. effectiveness.
b. expertise.
c. efficiency.
d. standardization.
e. innovation.

a. Effectiveness

Explanation:

The term efficiency refers to a higher input output ratio with focus upon judicious usage of resources and producing more number of units.

Effectiveness on the other hand is related to achievement of organizational goals and objectives.

In the given case, Gwendolyn is focused upon profit making alongside providing her customers with quality products. This is profit maximization along with customer satisfaction.

Thus, the given case points towards effectiveness.

$88

Explanation:

The transaction costs include both the explicit costs of advertising and renting the van as well as the implicit costs to Kevin for taking an hour off work.

Transaction cost therefore includes:

= Ad + Rent per hour + Kevin wages lost for the hour

= 10 + 60 + 18

= $88