Exhibit 2-1 Production possibilities curve data Consumption Goods Capital Goods
10 0
9 1
7 2
4 3
0 4
In Exhibit 2-1, the opportunity cost of producing the fourth unit of capital is
1 unit of consumption goods
2 units of consumption goods
4 units of consumption goods
there is not enough information to estimate the opportunity cost

Achecklists should be based on past

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

According to herman, one of the differences of managing a nonprofit versus a for-profit corporation is