While Buying Refreshments for an Upcoming Party,you Notice That a Six-Pack

question 170

Multiple Choice

While buying refreshments for an upcoming party,you notice that a six-pack of Americana Beer costs $2 and a six-pack of Bavarian Beer costs $4.You buy the six-pack of Bavarian Beer,although you wonder if maybe two six-packs of Americana Beer would have been a better choice.The opportunity cost of the Bavarian Beer is:

• A)$4.
• B)a six-pack of Americana Beer.
• C)two six-packs of Americana Beer.
• D)$4 and the six-pack of Americana Beer.

---

Definitions:

Unit Sales

The total number of individual items or products sold within a specific period.

Business Risk

The potential that a company will have lower than anticipated profits or experience a loss rather than making a profit.

EBIT

Earnings Before Interest and Taxes, an indicator of a company's profitability that excludes interest and income tax expenses.

Federal Regulations

Rules set forth by government agencies to control activities within various industries and protect public interests.